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Environmental Management
Sustainability Report 2006

Environmentally Friendly Manufacturing (5)
Environmental Investment and Environmental Accounting

Environmental Investment

To reduce the environmental burden, Kobe Steel undertakes environmental capital investments of 2 to 5 billion yen annually and spends over 20 billion yen annually on the maintenance of plant and equipment. Furthermore, in order to reduce the number of processes and thoroughly recover exhaust heat, Kobe Steel has implemented various energy-saving capital investments.


Environmental Measures: Total Maintenance Cost (Parent Company Only)

Environmental Measures: Total Maintenance Cost
Environmental Measures: Total Investment (Parent Company Only)

Environmental Measures: Total Investment

Energy-Saving Measures: Total Investment (Parent Company Only)

Energy-Saving Measures: Total Investment




Environmental Accounting

Kobe Steel's capital investments in fiscal 2005 amounted to approximately 3.55 billion yen and expenditures came to about 22.8 billion yen. Roughly 45% of total expenses were for air pollution prevention, 16% for water pollution prevention, and 22% for by-product and waste treatment. As these figures show, environmental measures and recycling costs accounted for a large part of total expenditures.

R&D expenditures allocated for e
nvironmentally friendly product development and reducing the environmental impact of production processes accounted for approximately 7.5% of total expenditures, or 1.7 billion yen.

Environmental Investment and Expenses (non-consolidated)
(unit: billion yen)
Category Capital investment Expenses
Environmental measures Air pollution prevention
Water pollution prevention
1.62 10.27
3.71
Global environmental conservation Energy saving measures 1.93 -
Resource recycling By-product & waste treatment - 4.95
Management activities Development of environmental management system, ISO 14001 certification
Monitoring and measurement of environmental burden
Personnel expenses for environmental measure organization
- 0.01

0.2

1.2
R&D Eco-products, reduction of environmental burden on production processes - 1.72
Societal activities Reforestation, support for environmental groups, advertising - 0.25
Others SOx tax - 0.52
Total   3.55 22.83