External Economic Benefit Evaluation EEBE(R)
The DOWA group's environmental business unit contributes to environmental conservation by recycling resources, processing wastes in a proper manner, rendering them harmless and stabilizing them. The business unit also destroys and processes CFC and HCFC that contribute to destruction of the ozone layer and global warming and utilizes the heat generated from burning these wastes.
We evaluated the effects of these activities over society and the environment by using the concept of External Economical Benefit Evaluation (EEBE(R)) (Note 1.)
Total: 94 billion yen
EEBE through Wastes Processing
: 25 billion yen
We evaluated the EEBE(R) of the effects of volume reduction through incineration of wastes (volume loss effect), life prolongation of landfill disposal sites, rendering hazardous materials harmless and stabilizing them.
| Effect | Accepted volume of industrial wastes |
Final landfill disposed volume |
Social cost unit | EEBE(R) |
|---|---|---|---|---|
| Volume reduction | Industrial wastes 660,000 t/year |
Burnt ashes 220,000 t/year |
Unit price of controlled 15,000 yen/t |
(Industrial wastes not requiring special 6,600 million yen/year |
| Rendering harmless | Industrial wastes 130,000 t/year |
Ash dust 39,000 t/year |
Unit price of 200,000 yen/t |
(Industrial wastes not requiring special 18,000 million yen/year |
| Grand total | 25,000 million yen/year | |||
EEBE(R) through Metal Recycling
: 69 billion yen
In evaluation of the economic effects of our metal recycling from wastes, we included both the metal value of recovered metals (calculated using LME (London Metal Exchange) price as international quoted market price) and the effect of expanding the life of landfill disposal site through reducing the volume of waste that contain metals.
| Effect | Total accepted volume of recycled materials | Final landfill disposed volume | Unit of social cost | EEBE(R) |
|---|---|---|---|---|
| Volume reduction |
100,000 t/year |
1,000 t/year |
Unit price of controlled final disposal site 15,000 yen/t |
(Total accepted volume of recycled raw materials final landfill volume) x Unit price of controlled final disposal site 1,500 million yen/year |
| Effect | Recovered volume | LME price (as of March 31, 2009) Note: as of for March 2009 for indium |
EEBE(R) |
|---|---|---|---|
| Recovery of gold | 6,000kg/year | 3,300,000yen/kg | 20,000million yen/year |
| Recovery of silver | 420,000kg/year | 53,000yen/kg | 22,000million yen/year |
| Recovery of copper | 10,000t/year | 730,000yen/t | 7,600million yen/year |
| Recovery of lead | 24,000t/year | 240,000yen/t | 5,900million yen/year |
| Recovery of zinc | 19t/year | 250,000yen/t | 5million yen/year |
| Recovery of palladium | 1,200kg/year | 1,400,000yen/kg | 1,700million yen/year |
| Recovery of indium | 190,000kg/year | 56,000yen/kg | 10,000million yen/year |
| Subtotal | 35,000t/year | 67,000million yen/year |
EEBE(R) through destroying CFCand HCFC
: 0.38 billion yen
By destroying CFC and HCFC, we can expect to achieve an effect of preventing destruction of the Ozone layer and global warming. We have adopted the LIME (Life-cycle Impact assessment Method based on Endpoint modeling (Note 2.) to convert these effects into EEBE(R).
| Effect by destroying CFC and HCFC | EEBE(R) |
|---|---|
| Impact on global warming | 210million yen/year |
| Impact on destruction of the Ozone layer | 170million yen/year |
| Grand total | 380million yen/year |
(Note 1.) EEBE(R) refers to a quantitative index that evaluates business activities, by converting into a specific monetary value the effects that a company strives and achieves to reduce environmental load. The intermediate corporation Club ECOFACTURE consisting of the four largest auditing firms, large enterprises and university professors are studying this index. （http://www.ecofacture.com/eebe/）
(Note 2.) LIME refers to Life-cycle Impact assessment Method based on Endpoint modeling that was developed by the Research Center for Life Cycle Assessment in partnership with LCA Project Impact Assessment Study Group. It is an index that evaluates impacts of substances on the environment, considering their life-cycle, into which various impacts on human health or social capital, etc are integrated and calculated as a lost amount of money per unit volume. At present over 1,000 environmental harmful substances are put into the database.
(Note 3.) As for the EEBE(R) on destroying CFC and HCFC, we used LIME coefficient as a test case to calculate the effect of preventing global warming and destruction of the Ozone layer. Some CFC for which LIME is not used are excluded, even if the effect of preventing global warming and destruction of the ozone layer is expected, in order to be conservative.
(Note 4.) In calculating EEBE(R), only EEBE from business establishments in Japan was included and external economic benefit effects from the business activities from our overseas business establishments were excluded.
The Third Party's Opinion------------------------------------------------------------------------------------
Club ECOFACTURE(R) WG:
Manager and Chief Consultant: Masatoshi Inokari
Environment Group, First Consulting Department
InterRisk Research Institute & Consulting, Inc.
The DOWA group publishes the results of EEBE(R) along with data on environmental accounting every year since the Environmental Report published in 2004. This is the seventh publication. Although the report started with DOWA's industrial wastes disposal business and metal recycling business, since 2007 the report has included EEBE(R) of destroying CFC and HCFC. This initiative of DOWA is ongoing and rich in content.
I expect DOWA will not only publish the annual results of EEBE(R), but also publish changes in annual results of EEBE(R) with explanation, like environmental accounting data and environmental performance data. In this way, DOWA can communicate its unique external economic benefit effects achieved through its business activities to a wide range of DOWA's stakeholders.
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