Environmental Accounting || KOBE STEEL, LTD.

Environmental Accounting

We make every effort to implement environmental management as efficiently as possible, based on a thorough understanding of the costs and effects of the Kobe Steel Group’s environmental activities.

Environment-Related Investment

To reduce its impact on the environment, investment in the building and maintenance of eco-friendly facilities is ongoing, and wide-ranging measures for the environment have been introduced.

Capital investment for fiscal 2010 totaled approximately 2.6 billion yen and expenditure reached about 34.0 billion yen. Some 37% of this expenditure went to atmospheric pollution prevention, 14% went to water pollution prevention, and 27% went to resource recycling.

Also, about 4.9 billion yen, or 14% of total expenditure, was spent on research and development.

Breakdown of Capital Investment and Expenditure (Parent only)

(billion yen)

Category			Capital expenditure	Costs
Within business area	Pollution prevention	Atmospheric pollution prevention	7.3	127.4
	Pollution prevention	Water pollution prevention	2.4	48.0
	Resource recycling	Waste recycling and treatment costs	1.0	91.0
	Global environmental preservation	Investment in energy saving	15.7	-
Monitoring	EMS registration, updates, etc.		-	0.1
	Monitoring and measuring environmental impact		-	3.6
	Personnel costs for monitoring environmental measures		-	16.2
R&D	Eco products, lowering the environmental impact of manufacturing processes		-	48.9
Community activities	Support for environmental groups, publicity		-	0.4
Others	Levies on the volume of pollutants		-	4.4
	TOTAL		26.4	340.0

* The only figure given for "global environmental preservation" is capital expenditure because costs are included under operations.

Total Environment-related Capital Investment (parent only)

Total Environment-related Maintenance Costs (parent only)

Total Energy-saving-related Capital Investment (parent only)

* Values above graphs indicate total summed up from fiscal 1970.

Environment Conservation Effect

Details of the effects of our environmental conservation activities can be found in the relevant sections: "Measures Against Global Warming" and "Promoting Recycling."