Environment Costing

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Presented by: GROUP - 8 THE GREEN REVOLUTION @

Brief History:

Brief History Formed in 1939 as a result of a merger between To kyo Denki and Shiba ura Seisakusho. Main business areas are infrastructure, consumer products, electronic devices and components. Expanded strongly between 1940’s and 50’s through internal growth and acquisitions and in 1970’s through new subsidiaries. Environmental protection center (with engineering laboratory with R&D facility) in 1988 and environmental protection rules in 1989.

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By 1990, it embraced “Protection of Earth’s environment” as top Management Priority. The slogan “ Committed to People, Committed to Future ” was initiated. Toshiba started acquiring International Standards for all the factories and by 1997 they achieved the certifications for all the facilities. Since 1998 Toshiba has been releasing its environmental report every year.

Environmental Vision: 2050:

Environmental Vision: 2050

Three processes towards this goal…:

Three processes towards this goal… Greening of Process Greening of Products Greening by Technology

1. Greening Of Process:

1. Greening Of Process Concerned with ‘Process Improvement’. Three Perspectives Mitigation Of Climate Change Management Of Chemicals Efficient Use of Resources Greatest Challenge  Growing Demand which leads to increase in manufacturing and subsequently, fuel consumption. Focus On  Semiconductor plants as they produce 50% of the total Greenhouse Gas.

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Steps taken: LED lighting at semiconductor plant Energy efficient nuclear power plant Biodiversity (initiative at plants) Recycling units (end of pipe) The target set for 2012 is to achieve 1.3 times of eco efficiency with respect to 2000. But in 2010 itself, TOSHIBA has exceeded the target; the eco efficiency right now is 1.39 times that of 2000 .

Calculation Of Eco Efficiency:

Calculation Of Eco Efficiency Degree of improvement in eco efficiency = Eco efficiency of assessment year / Eco efficiency of base year (2000) WHERE, Eco efficiency = Net sales / Environmental impact of the entire process.

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How do we find environmental impact? It’s a variant of life cycle costing. Here, the end of pipe wastages and green house gases are fed into LIME ( Life cycle Impact Assessment Method), which calculates the ultimate impact in terms of monetary value.

LIME:

LIME

2. Greening Of Products:

2. Greening Of Products Concerned with Prevention of environmental damage. Surge in sales of electronic items and home appliances also leads to increased impact on environment. The target for 2012 is to achieve 2.55 times more product eco- efficiency over the year 2000. Thus every product has to be an Environmentally Conscious Product (ECP).

Calculation Of Product Eco-efficiency:

Calculation Of Product Eco-efficiency Product eco-efficiency = Monetary value of a product / Monetary value of its environmental impact WHERE, Environmental Impact is again calculated using LIME.

TOSHIBA CARBON ZERO SCHEME:

TOSHIBA CARBON ZERO SCHEME Aimed at offsetting carbon footprints of Toshiba laptops and televisions with the help of small donations from customers. Donations are used to support a mixture afforestation projects based in the UK and energy efficiency projects within Kenya . It allows customers to invest in projects that save the emission of, or absorb, an equivalent amount of CO2 to that of their footprint .  Through this process, they can therefore balance out their emissions and become ‘ Carbon Zero ’.

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Scheme was set up in 2007 in collaboration with carbon offsetting expert CO2 Balance. Since then they have planted 20,000 trees within the dedicated Toshiba Woodland in the U.K. Current donations for offsetting carbon footprints are £ 1.28 for a Toshiba laptop £ 9.46 for a Toshiba T.V.

3. Greening By Technology:

3. Greening By Technology Technology implies Energy and Environmental technology . Promoting initiatives aimed at providing a stable power supply and mitigating climate change through its low-carbon energy technologies. Toshiba intends to mitigate the CO2 emission problems by enhancing its nuclear power generation technology .

Environment Management:

Environment Management Toshiba has maintained an Environmental management structure since 1997, which is responsible for continuous monitoring of all activities relating to environment. An Environment management arm which coordinates with the other arms of the group so that there is goal congruence among all the arms with regards to environmental issues.

Environment Management:

Environment Management

Environmental Accounting @ Toshiba:

Environmental Accounting @ Toshiba Environmental Accounting based on 4 basic concepts : Prevention of potential environmental risks Competitive advantages Internal benefits and External benefits

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Benefits are further classified into 4 categories to provide useful indices of environmental management: Customer benefits due to reduced power consumption of products Assumed economic benefits estimated to result from reductions in air pollutant emissions Benefits resulting from preventing potential risks Actual economic benefits resulting from reductions in the amount of waste and energy consumed

An Outline..:

An Outline..

Fiscal Impact Over The Years:

Fiscal Impact Over The Years

Breakdown of Environmental Costs:

Breakdown of Environmental Costs

Environment Audits:

Environment Audits Since 1997, all the facilities of Toshiba in Japan had ISO 14001 certification , naturally its audit system should be robust. Toshiba’s Environmental Audit System checks for Environment activity promotion, level of compliance with guidelines, level of achievement of goals, technology audits . This is done phase wise and then consolidated over time. On site Audits of building, individual plants Divisional Audits comprising of buildings, plants Group Companies audit comprising of subsidiaries, suppliers, logistics Overall consolidation

Other Environmental Measures:

Other Environmental Measures The Solar Lantern Project - to donate power charging facilities that utilize solar batteries along with solar lanterns to areas abroad that have no electricity. LED Workshop for Local Children- to promote education of technology and environmental protection where children are taught how to make LED lights and about their power efficiency. 1.5 Million Tree Project – A project to plant 1.5 million trees by 2025 in Japan. Awarded the Tokyo Environmental Award (Governor’s Award) for this in 2009.

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Nature’s Interpreters – Working with Nature Conservation Society of Japan (NACS-J) to provide training & certification programs to volunteers through workshops on nature conservation. Seminars on Environmental Exhibition – for both employees and public audience. And many more…

Conclusion:

Conclusion Every company needs to bear the responsibility of protection of environment and conservation of resources. There should be a well defined environmental mission. Appropriate measures should be taken to prevent environmental impacts and proper monitoring should be done. Environmental impact of a product should be calculated in terms of an absolute value and measures should be adopted to continually reduce this value.

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Improve each and every process of the life cycle of a product to decrease its carbon footprint. Proper following of Environmental Accounting Standards. Active and wholehearted participation towards a clean society!