Environmental Accounting Midori Ippai

With the aim to efficiently and effectively promote environmental conservation efforts, NTT West Group introduced an environmental accounting system in FY 2000. This system gathers and analyzes the costs for conserving the environment in business activities, as well as the economic effects obtained from these activities. Data acquired from environmental accounting is utilized as the base data for promoting environmental management.

• *Environmental conservation costs refer to the investments and expenses required for implementing corporate environmental protection measures. Investments refer to investments in depreciable assets that are intended for environmental conservation. Expenses refer to costs incurred by environmental conservation activities.
  Environmental conservation costs include items ranging from 1. Business Areas to 6. Environmental Damages.
• *Environmental conservation effects (economic) refer to the economic effects on corporate management, including reduction in cost of disposal and gains from the sale of valuable resources, as a result of promoting environmental conservation.
  Environmental conservation effects (economic) include items ranging from 1. Cost Reduction by Energy Saving to 4. Postage Expense Reduction through Online Correspondence.

Environmental Conservation Costs

Investment for FY 2015 was 70 million yen (2.91 billion yen in FY 2014), which were attributable to the introduction of energy-saving equipment for air conditioning and lighting and the replacement of the switching system.
Although the costs for handling wastes from construction works and dismantled telecommunications facilities have been reduced, the expenses for FY 2015 were 6.22 billion yen (6.02 billion yen in FY 2014) due to a slight increase in the expenses for PCB disposal.

Category		2015
		Investment	Expense
	Pollution Prevention within Business Area		27.0
	Global Environment Conservation within Business Area	0.7	0.2
	Resource Recycling within Business Area	0.01	32.1
	Upstream & Downstream		0.8
	Management Activities		2.1
	R&D
	Social Activities		0.016
	Environmental Damages
		0.7	62.2

Environmental Conservation Effects (Economic)

Environmental conservation (economic) effects for FY 2015 reached 10.64 billion yen, which exceeded the result of FY 2014 (10.72 billion yen).

Category		2015
	Cost Reduction by Energy Saving	19.4
	Revenue from Recycling	14.5
	Dismantled Telecommunications Facilities	41.7
	Office Wastes	1.4
	Postage Expense Reduction through Online Correspondence	29.4
		106.4