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Environmental Accounting

Environmental Conservation Expenditure (Non-consolidated)

(Unit: million yen)

Category Main Activities Investment Cost
Business area costs 2,161 3,624 3,964 10,632 10,834 9,456
Details Pollution prevention Water pollution prevention etc. 1,537 2,128 1,904 3,996 3,996 3,980
Global environmental conservation WHR power generation systems etc. 381 1,352 1,667 6,197 6,197 4,907
Resource recycling Waste treatment etc. 243 144 393 439 439 569
Upstream and downstream costs Recycling waste and by-products as alternative raw materials and fuels for cement 3,933 3,020 1,255 4,955 4,955 6,189
Administrative costs Environmental management etc. 65 113 78 141 141 151
R&D costs Innovative cement manufacturing processes etc. 556 539 537 812 812 867
Social activity costs Plant tours etc. 2 0 0 28 28 43
Environmental remediation costs Emission levies etc. 0 97 172 87 87 87
Total 6,717 7,393 6,006 16,655 16,655 16,793

(Unit: million yen)

FY2019 FY2020 FY2021
Total investment 20,020 20,975 23,057
Total R&D expenditure 1,192 1,195 1,246

External Economic Benefits Derived from the Recycled-Waste-to-Cement System

We use the external economic benefit (EEB) evaluation method to express, in monetary terms, our evaluation of socioeconomic benefits from environmental impact reduction due to increased recycling of waste accepted from outside the company. We calculate that we created a social benefit of 89.2 billion yen in FY2021. The total amount of waste and by-products used in FY2021 was less than in the previous fiscal year, leading to an approximate 2% decrease in economic benefit on FY2020.

External Economic Benefits (FY2021) (Non-consolidated)
Impact Inventory Reduction (t) Inventory
Market Price (Yen/t)
External Economic Benefit
(Hundred million yen)
Climate change mitigation CO₂ 1,779,704 3,000 53
Depletion of energy resources Crude oil 105,344 18,400 19
Depletion of mineral resources Natural resources 4,671,056 1,000 47
Shortage of landfills Waste 5,152,393 15,000 773
Total 892

Taiheiyo Cement’s External Economic Benefit Evaluation

  • We have developed a unique evaluation method to estimate the contribution to overall environmental benefit to society by utilizing waste materials from other industries.
  • We use information, including data collected for the GCCA Cement CO₂ Protocol, to calculate the reduction in consumption of fossil energy and natural resources associated with the use of waste and by-products.
  • Economic benefits are calculated by multiplying reductions in consumption (effects of environmental conservation) by set market prices.
    The market values of the inventory items are set at FY2001 levels, and are estimated on the basis of the following considerations.
    CO₂: 3,000 yen/t (a hypothetical CO₂ emission tax rate). Crude oil: import price. Natural resources: estimated price. Waste: controlled landfill costs in the Tokyo area.
  • A portion of the EEB is accounted for in our profit and loss statement.

Environmental Accounting for One of Our Projects
Installation of a Hydrated Raw Material Mixing System at the Fujiwara Plant No. 5 Kiln


In order to boost the rotary kiln firing efficiency, standard raw materials for cement are dried, pulverized and homogenized in a raw mill. In recent years the amount of substitutes used for natural resources is increasing, and some of those recycled resources have a strong odor like hydrated sludge and cannot be processed in a raw mill. This makes it necessary to feed them directly into a rotary kiln to decompose any malodorous components.

The hydrated raw material mixing system installed at the Fujiwara Plant No. 5 Kiln in FY2021 was jointly developed by Taiheiyo Cement and Taiheiyo Engineering Corporation. It is a new type of mixing system that separates high-temperature raw materials inside the preheater and premixes them before they are fed into the rotary kiln, thereby dramatically boosting drying and firing efficiency. The new mixing system will lead to less thermal energy being required for clinker burning, and is intended to further reduce CO₂ emissions and environmental impact.

Hydrated raw material mixing system

Hydrated raw material mixing system

Investment: Approx. 3.4million yen

Reduction in CO₂emissions: 2,388tonnes/year

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