Supplementary Material for Integrated Report 2020

Environmental Accounting

The KOBELCO Group continuously engages in environmental conservation. The costs and benefits of these efforts are analyzed, and relevant information is disclosed in order to deepen stakeholders’ understanding of our initiatives.

Environment-Related Investments and Results

Kobe Steel, Ltd. invests in the installation and continual maintenance of environmental equipment and pursues environmental measures on a variety of fronts. In fiscal 2019, we invested approximately ¥3.9 billion, primarily to reduce CO2 emissions and prevent water pollution.

Expenses in fiscal 2019 totaled ¥35.6 billion. Moreover, we invested about 26% of total expenses, or roughly ¥9.4 billion, in R&D for technology development, including making automobile weight reduction proposals that combine competitiveness in the raw materials of cutting-edge high-strength steel and aluminum with automotive solution technologies, applying our strengths in steel, aluminum and welding materials.

Of these, we invested approximately ¥5.8 billion as research and development expenses related to climate change. We will continue to implement measures related to environmental preservation.

Environmental Conservation Costs (FY 2019)

(Millions of yen)

Item Equipment investment Expense
Costs in business areas Pollution prevention costs Air pollution prevention 80 9,540
Water pollution prevention 620 4,940
Resource recycling costs Waste recycling/ processing, yield improvement 10 9,030
Climate change-related costs Energy-saving investment 3,210 -
Management activities costs EMS registration/renewal - 50
Environmental impact monitoring/measuring - 300
Personnel expenses for environmental measures/organizations - 2,020
R&D costs Development of eco products and reduction of environmental impact of manufacturing processes - 9,390
Of which, R&D related to climate change - 5,770
Social activities costs Environmental organization support, advertising - 10
Other costs Assessments on pollution load - 320
Total 3,920 35,600

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