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Environment-related Investment and Environment Accounting

Environmental Management Sustainability Report 2007 1. Environmentally Friendly Manufacturing (5) Environment-related Investment and Environment Accounting Environment-related Investment Measures are being promoted on all fronts to reduce environmental impact, with 2 to 5 billion yen invested annually in environmental facilities and more than 20 billion yen allocated each year to maintenance and management costs of plant and equipment. Investment has been made in a variety of energy-saving facilities to simplify production processes and recover waste heat. Due to the air emission problem, additional capital investment has been directed to installing dust-control nets and implementing other measures. Environmental Measures Total Investment Environmental Measures Total Maintenance and Management Costs Energy-saving Measures Total Investment Environment Accounting Capital investment for 2006 totaled approximately 8.2 billion yen and expenditure reached about 22.6 billion yen. Of this expenditure, 54% went to atmospheric pollution prevention, 21% went to water pollution prevention, about 10% went to waste and byproduct processing, indicating the high proportion of expenditure allocated to environmental protection measures and recycling. The cost of R&D directed to lowering environmental impact through "Eco" products and manufacturing processes was about 800 million yen, representing approximately 4% of the total expenditure. A further 9.7 billion yen was allocated for construction starts, of which 9.4 billion yen went to the Kakogawa Works. Environment-related Investment and Costs (unit: billion yen) Category Capital expenditure Costs Environment protection measures Atmospheric pollution prevention 49.8 122.7 Water pollution prevention 48.5 Global environment conservation Energy-saving measures 32.3 - Recycling Byproducts, waste processing - 20.9 Monitoring and control EMS formulation, ISO14001 compliance, environmental education - 0.6 Monitoring and recording environmental impact 3.1 Personnel costs for environmental measures 12.1 R&D Eco products, lowering environment impact of manufacturing processes   - 8.0 Community activities Planting, support for environmental groups, publicity - 4.9 Others SOx levies - 5.5   TOTAL 82.1 226.3