Estimation Method of Environmental Accounting

For more information on environmental management, refer to the Sustainability Report.

Estimation Method of Environmental Accounting

1. The standards incorporated

Osaka Gas's environmental accounting method, which calculates costs and benefits, is based on the 2000 version of the Environmental Accounting Guidelines for Gas Utilities released by the Japan Gas Association. The guidelines are based on the Ministry of the Environment's Creating an Environmental Accounting System Guidelines and reflect the distinctive characteristics of city gas companies.

2. Scope

Osaka Gas Co., Ltd.

3. Period

April 1, 2022 - March 31, 2023
In order to improve the accuracy of environmental accounting as well as reduce the workload, Osaka Gas developed and operates a system tied to the in-house financial accounting system since FY2001.3.

Calculation of environmental costs and benefits

(1) Environmental conservation costs

The aggregate figures for each item are compiled as far as possible using only costs incurred for environmental purposes (differential aggregation). R&D and personnel costs from which it is difficult to extract only those costs incurred for environmental purposes are calculated on a pro rata basis using an “environmental ratio” determined in accordance with their degree of connection to the environment.
Investment: aggregate of the fixed assets acquired in the fiscal year in question that contribute to environmental improvements
Costs: aggregate of depreciation costs, labor costs and expenditures for environmental efforts
Depreciation of fixed assets acquired since 1997 (including terminals and other large-scale facilities acquired prior to that) is calculated via the declining balance method over the useful life of the equipment. Labor costs are calculated using standard unit costs.

(2) Internal economic benefits

The benefits accrued from cutting expenses that can be clearly reduced based on the company's operational performance were aggregated.

(3) Economic conservation effects (material effects)

The environmental impact level, the total environmental impact, and the environmental impact mitigation level are calculated.

  • ・Environmental impact level
    NOx, COD, CO2, general waste, and industrial waste figures are calculated per cubic meter of gas sold. Final disposal volumes for surplus soil are calculated per km ofgas pipesinstalled.
  • ・Total environmental impact
  • ・Environmental impact reduction
    For NOx and COD, the difference from the stipulated value for each facility is posted. For CO2, general waste and industrial waste, figures are calculated by multiplying the differences in output units (amounts per cubic meter of gas sold) from the benchmark FY1999.3 levels by the volume sold that fiscal year. For final disposal of excavated soil, the reduction in offshore landfill disposal was calculated based on the amount of reduction in excavated soil and the amount of soil recycled.

(4) Social benefits of environmental conservation (monetary value)

The monetary values of social benefits derived from reducing environmental impact were calculated. For final disposal of excavated soil, the monetary values of social benefits stemming from environmental conservation are calculated by multiplying the base unit price determined through the contingent valuation method (CVM; a method in which residents are surveyed on the amounts they are willing to pay for environmental conservation and then the monetary value of this conservation is calculated) by the reduction in environmental impact.
Base units were also selected for other environmental impacts corresponding to the amount of environmental value on the basis of research on environmental damage costs, etc., both inside and outside Japan, and then the environmental conservation benefits were calculated by multiplying these base units by the respective amounts of harmful impacts curbed.

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