The Earth, People & Energy
2 Sustainability Report 2005
PROFILE
Shin-Takasegawa
Kashiwazaki-Kariwa
Shinanogawa
Nakatsugawa DaiichiYagisawa
Tanbara Imaichi Kinugawa
Shiobara
AkimotoFukushima Daiichi
Fukushima Daini
Hirono
Kashima
Hitachinaka
Midono
Azumi
Kazunogawa
Kanagawa Branch
Numazu Branch
Yamanashi Branch Tama BranchTokyo Branch
Saitama Branch
Head Office Chiba Branch
Ibaraki Branch
Tochigi Branch
Gunma Branch
Futtsu
Yokosuka
Minami YokohamaYokohamaYokohama
Numazu
Kofu
Maebashi
Hachioji
Saitama
ShinjukuChiba
Mito
Utsunomiya
Higashi-OhgishimaKawasakiOhiShinagawa
SodegauraAnegasaki
GoiChiba
Nuclear power station
Hydro power station (100MW or more)
Thermal power station
Location of branch office
Power Stations and Branch Offices
Head Office
Established
Equity capital
Shareholders
Sales turnover
Gross assets
Employees
Electricity sales
Customer agreements
Maximum output
Affiliated companies
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1-1-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo, JAPAN
May 1, 1951
676.4 billion yen
821,841
4.82 trillion yen (FY2004)
13.1 trillion yen
38,510
286.7 TWh (FY2004)
27.7 million (does not include specified scale demand)
64.3 GW (July 24, 2001)
210
Service areas of the 10 electric utilities
Electricity sales by the 10 electric utilities
Tohoku Electric Power Company
Tokyo Electric Power Company
Hokuriku Electric Power Company
Kansai Electric Power CompanyChugoku ElectricPower Company
Shikoku Electric Power Company
Kyushu Electric Power Company
Okinawa Electric Power Company
Chubu Electric Power Company
Hokkaido Electric Power Company
total
865.4TWh
TEPCO286.7 TWh
HokkaidoTohokuChubuHokuriku
Okinawa
Kansai
Chugoku
Shikoku
Kyushu
Tokyo Electric Power Company, Inc. (TEPCO)For more than half a century since its 1951
establishment, the Tokyo Electr ic PowerCompany, Inc. (TEPCO) has delivered a stablesupply of high-quality electricity through an inte-grated power generation, transmission and distri-bution system. In this way, TEPCO has supportedthe development of Japan's postwar society, aswell as the greater convenience and affluence ofpeople's lives.
TEPCO supplies electricity to the Tokyo met-ropolitan region. Though only covering about10% of Japan's total land area, this region ishome to one-third of its population, and is thepolitical and economic heart of the nation.
TEPCO's electricity sales in the term endingMarch 2005 totaled 286.7 TWh in volume. Aswell as being the largest volume in Japan,accounting for about one-third of the nationaltotal, this was more than the market volume forthe whole of Italy.
(As of March 31, 2005)
C O N T E N T S
President's Message
Feature: Social Responsibility at TEPCO
●Working Together with Our Customers to Meet the Kyoto Commitment
● Electric Power for a Safe, Eco-Friendly and Comfortable Life
● The Power Supply is Fundamental to Our Lives
Group Management Principle
Governance System
Complying with Corporate Ethics
Group Charter of Corporate Conduct
Financial Highlights
Group Basic Environmental Philosophy
Environmental Management
Global Warming
Supply-Side Management
Demand-Side Management
International Cooperation
Air Pollution Prevention
Material Recycling
Biodiversity
Environmental Accounting
Communication
Customers
Local Communities
Future Generations
Shareholders / Investors
Business Partners
Employees
Non-Profits and Community Interest Groups
International Society
Nuclear Power as TEPCO Sees It
I Work in a Nuclear Power Station
Independent Review
Management Section
Environmental Section
Social Section
Nuclear Power Section
INTRODUCTION
This report sets out TEPCO's initiatives and record in its quest toachieve a sustainable society.
TEPCO has issued reports on its environmental initiatives since1992, but this year we are fashioning the publication into a full-fledged Sustainability Report consisting of sections on management,environment, society and nuclear power. Each section reports onTEPCO's initiatives for achieving a sustainable society.
TEPCO provides company financial data in our Annual Report.
Inquiries
Previous publication
Period covered by the report
Environmental Department, Tokyo Electric Power Company, Inc. (TEPCO)1-1-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo, JAPANTel: +81-3-4216-1111Fax: +81-3-4216-6338Web site: http://www.tepco.co.jp/en/index-e.html
July 29, 2004
Scope of the Report
This report basically covers the non-consolidated performance of TEPCOin FY2004. Some of the content also deals with the performance of othermajor TEPCO Group companies.
FY2004 (April 2004 - March 2005)
○ In compiling this report, we have referred to the GRI (Global ReportingInitiative) Sustainability Reporting Guidelines 2002.
○ As independent review, this report also includes opinions received from theTEPCO Advisory Committee on Environmental Affairs (a body consisting ofexternal experts and academic specialists), a review by the SustainableManagement Rating Institute (SMRI) as based on results of a rating given inFY2004, and a third-party opinion by Mr. Hideto Kawakita, Chief ExecutiveOfficer of the International Institute for Human, Organization and the Earth(IIHOE, an environmental NPO).
Sustainability Report 2005 3
Sustainability Report 2005 Annual Report 2005
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President's Message
TEPCO and the responsibility for building a sustainable society
A stable power supply is the heart of our social responsibility
The TEPCO Group's policies for building a sustainable society
Building a sustainable society by fulfilling our Management Principle
In October 2004 TEPCO formulated "Management Vision 2010" providing direction and targets in support of our Management Principle:
"Contribute to better lifestyles and environments by providing superior energy services." We have also recently incorporated the ideals of Corporate Social Responsibility (CSR) into the management of the whole TEPCO Group, by expanding the former "Charter of Corporate Conduct" into the "Group Charter of Corporate Conduct" in April 2005. This reflects an awareness of social responsibility throughout the entire TEPCO Group.
For this Sustainability Report, President Tsunehisa Katsumata discusses TEPCO's position on its responsibility for building a sustainable society and how it intends to follow through.
Enterprises do not exist to maximize profits only,
but to pursue the good (that is, the development) of
both the community and the enterprise itself. This is
the social responsibility of an enterprise.
As a member of the power industry, TEPCO
understands that electric power is as crucial as air
and water to citizens of modern society, and
therefore it is TEPCO's role to provide power safely
and stably. This long-established principle was in
place long before I joined the company. Our
employees pride themselves on this commitment
that TEPCO has made since its founding.
While supplying power is our core mission,
TEPCO's responsibilities for sustainability go far
beyond this. These include thorough compliance
with corporate ethics, the law, internal rules and
society's standard of good sense. Furthermore, while
providing for society's needs, we must respect
human rights and address environmental problems,
most notably global warming.
The Management Principle for the entire TEPCO
Group is that "Contribute to better lifestyles and
environments by providing superior energy services."
This philosophy perfectly expresses the social
responsibility of the TEPCO Group in its business of
supplying energy.
With this Management Principle in mind, the
TEPCO Group has promulgated the "Group Charter
of Corporate Conduct" (setting out the social
responsibilities universal to the Group) and
"Management Vision 2010" (indicating specific
principles and targets for fulfilling our Management
Principle). I am confident that by honoring these
ideals and fulfilling our Management Principle, the
TEPCO Group will earn the community's trust and as
a result help build the sustainable society.
TEPCO's Mission: Building a Sustainable Society
4 Sustainability Report 2005
The importance of following rules
My greatest responsibility: managing safety and quality and assuring rule compliance
Dealing with environmental problems
Targeting global-level sustainability as the Kyoto Protocol takes effect
Earning the trust of the public
Keys to trust: a stable power supply and sincere communication
I apologize sincerely for inappropriate conducts
that came to light three years ago in our nuclear
power operations. These events seriously
inconvenienced many people and resulted in the
almost immediate loss of our public trust, a situation
unprecedented in TEPCO's history. After reflecting
deeply on these events, TEPCO has been steadily
undertaking company-wide initiatives to assure safety
and prevent the recurrence of inappropriate conducts
so that nuclear power is trusted by the public and
helps to build a sustainable society.
Recent cases in Japan remind us of the importance
of putting safety first and managing the quality of our
work thoroughly. Since TEPCO is engaged in
supplying power, one of the fundamental needs of
modern life, we must take a lesson from these cases.
This lesson has increased my awareness that we must
practice stricter quality control and rule compliance
on the job. My greatest priority as President is to
spread this awareness throughout the organization,
from top management to those working on the "front
lines."
As an energy business owning power stations and
transmission facilities, TEPCO has taken pioneering
measures against the pollutants sulfur oxide, nitrogen
oxide and soot. We also endeavor to recycle
resources as part of our proactive initiatives for the
global environment. Management Vision 2010,
mentioned above, sets a challenge target of reducing
our CO2 emissions intensity 20% by FY2010 from an
FY1990 baseline. I look forward to sustaining our
drive to reach this goal. Furthermore, we are
expanding the use of nuclear power (with due regard
for safety), increasing thermal power efficiency, and
working to develop and spread the use of natural
energy sources.
The power industry is heading into a period of
true competition, and as a result, TEPCO's business
environment has radically changed. For example,
starting in April of this year, more than 60% of our
entire customer base was opened to competition. To
survive such changes – to be the provider of choice
for more customers – we must manage more
efficiently. However, at the same time, it is
absolutely crucial to win customer trust. To that
end, we must fulfill our core social responsibility
by providing safe, stable and high-quality power.
Our job is to work as a team to provide more
attractive services for our customers' satisfaction,
but this can only be done with a solid foundation of
trust that we have earned from the public.
Our business exists because it is supported by
many groups: customers who use electricity,
neighbors of our power generating facilities,
shareholders/investors, members of Non-Profits and
Community Interest Groups, our employees, and
the affiliates and business partners with whom we
work. Earning the trust of all these people is
necessary if we want customers to choose our
service.
The company that customers choose
Sustainability Report 2005 5
This year's report
Greater breadth for greater understanding
A closing word
Fulfilling our mission and responsibilities for an age of competition
Tsunehisa Katsumata PresidentTokyo Electric Power CompanyJuly 2005
As I have already noted, our business is supported
by many different people. This report is additional
tool for communicating with these stakeholders.
Since 1992 and continuing through last year, we have
issued a series of reports focusing primarily on our
environmental activities, and we have expanded the
content of this year's report to provide information
about the whole range of TEPCO's initiatives for a
sustainable society.
This report includes the reasoning behind our
initiatives that affect our various stakeholders, as well
as specific details, criteria, and results for these
initiatives. For example, we would like the public to
know about our initiative improvement activity
cycles, which include incorporating our customers'
comments and opinions. I sincerely hope you will
share your thoughts on this report with us.
I have shared with you my ideas about TEPCO's
responsibility for helping to build a sustainable
society. I have noted that our business of supplying
electric power provides a vital service for modern
life. In view of this, our fundamental mission is to
provide stable, safe, high quality electric power. In
addition, I believe that our leadership in solving
environmental and other problems faced by society
will definitely contribute to building a sustainable
society.
Further, if we are to be the provider of choice in the
new competitive market, it is essential that employees
throughout our Group have confidence and pride in
their work and fulfill their missions and
responsibilities appropriately. This is the preparation
we make for working in a competitive era.
The TEPCO Group looks forward to doing its part
in creating a sustainable society by continuing to
conduct its energy and other business lines, striving
honestly to earn the public's trust, and living up to the
Management Principle enshrined in Management
Vision 2010.
President's Message
Specific initiatives for earning trust
Wherever TEPCO has direct contact with
customers, we are striving, company-wide, to
create open workplaces which inspire eagerness
among our employees.
TEPCO is also actively creating ways to
increase business transparency, for example, by
disclosing information to investors, neighbors of
power facilities and members of public-interest
groups. In addition, we are holding information
meetings on fair business practices for our
business partners. Although the growth of the
Internet in recent years makes it convenient to get
information without personal contact, I believe
that using sincere, face-to-face dialogue, listening
to public concerns, and encouraging two-way
communication are essential for a company to
build trust.
Steadfast adherence to these practices will
increase the public's trust in TEPCO and enhance
our corporate value. Indeed, these practices are
absolutely essential for a business wishing to
survive in such a highly competitive marketplace.
6 Sustainability Report 2005
Sustainability Report 2005 7TEPCOサステナビリティレポート 2005 7TEPCOサステナビリティレポート 2005 7
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Feature index
Working Together with Our Customers
to Meet the Kyoto Commitment
Electric Power for a Safe, Eco-Friendly
and Comfortable Life
The Power Supply is Fundamental to Our Lives
Feature
Maintaining lifelines, taking steps against global warming,
and improving efficiency for all of society...
TEPCO has assumed the social responsibility of helping
to build a sustainable society.
This year's Feature introduces examples of TEPCO
initiatives to improve people's lives and make the earth
and the community a better place.
10
Demand side initiatives lead to big results
February 16, 2005. On this date the Kyoto
Protocol, which obliges industrialized nations
to reduce greenhouse gas emissions, came
into effect. TEPCO is responding by striving
to reduce 20% of CO2 emissions intensity by
FY2010 from an FY1990 baseline. We are
making a particular effort to reduce CO2 in
partnership with our customers. What are
TEPCO's aims?
Partnering with environmentally leading enterprisesIn 2000, SONY demonstrated environmental
progressiveness by adopting the SONY Group Environmental Vision as its Group-wide policy on the global environment. It also came up with its own indicator of environmental efficiency (sales divided by environmental impact) that seeks to mitigate environmental impact taking all business activities into account over the product life cycle. SONY's long-term goal is to increase its environmental efficiency vs. FY2000 by 50% by the end of FY2005 and 100% by the end of FY2010, and its members are putting their effort into reducing greenhouse gases to meet this goal.
In one solution SONY adopted high efficiency heatingsystems primarily using heat pumps. Such a system was first installed in 2002 at the Kumamoto Technology Center of SONY Semiconductor Kyushu Corporation, which has experienced energy savings of about 30%, cutting 1,290 tons of CO2 annually. Since then, the SONY Group has installed similar systems at the Sendai Technology Center (2003) and the Kokubu Technology Center (2004). The Kokubu plant expects its energy consumption to fall about 60%, cutting CO2 emissions by 24,000 tons per year. Kuwahara, who oversees SONY's energy management functions, says that
A newspaper ad TEPCO ran in three major daily papers on February 16 as the Kyoto Protocol came into effect.
Understanding that a stable power supply is its greatest social mission, TEPCO has pursued many initiatives. Today we renew our determination to fulfill our mission as anenergy business: assuring Japan's energy security and helping society to develop sustainably. Our new management plan, announced in March 2005, states that one of the key issues for company management is the building of a society with a strong environmental emphasis. It also promised that TEPCO as a whole would work to prevent global warming.
TEPCO strives for the safe and stable operation of CO2-free nuclear power stations, for thermal power that is more
thermally efficient, and the development and spread of natural energy sources. We must also find the best mix of power sources to assure a cut in CO2 emissions even as we provide a stable power supply. However, there are limits to what can be accomplished on the supply side. Therefore, taking more action on the demand side, which has great potential for future CO2 reductions, is all the more important. High efficiency equipment, capable of producing clean electrical power without waste, is not only economical for customers, but also helps the whole society use energy more efficiently and prevent global warming.
Feature Social Responsibility at TEPCO Environmental Initiatives
Working Togetherwith Our Customersto Meet the KyotoCommitment
8 Sustainability Report 2005
TEPCO's solution for SONY
Promoting efficient energy usage models throughout society
The key to SONY's successful energy savings campaign is a partnership with TEPCO for that purpose since 1992. Kuwahara says, "In this case, the key issue was speed. To create a hit product, an idea has to be transformed into a product in a very short time. In other words, any time weupdate a plant or equipment, we have to make sure this does not slow our time to market." Kuwahara adds that TEPCO's
solutions service provided many useful hints for resolving problems that SONY was facing in the implementation of the energy saving equipment. These were issues that SONY had little time to study and had been unable to solve on its own. TEPCO's expertise at smoothing out the power load and its thermal storage system simulation data were particularly effective for addressing technical issues.
"Heat pump performance has risen dramatically in the last fewyears, and as a result we can expect to see energy savingsfrom 30% up to more than 50% compared to earlier systems." Considering the overall effectiveness, he adds, "Given the lifespan, economy and eco-friendliness of the equipment, we are very eager to continue implementing high-efficiency heating systems."
Our common cause makes our job worth doingI work with customers in the financial sector, and
in the last few years even these customers have been actively addressing CO2 reductions and energy management as Tokyo's ordinance for the environment and the national government's Energy Conservation Law have come into force. We in the sales staff are monitoring customer power use in their head office buildings and branches and recommending energy-saving measures primarily by taking opportunities to propose thermal storage air conditioning systems. Three years ago we performed an energy diagnosis at a major bank. Since the bank was planning to update its head office building, we suggested that they make greater use of more eco-friendly nighttime power by making some operating
improvements to thsystem. This was a
"solutions-based salescustomer to solve theincreasingly deregulasame time we havecustomers: the natioemissions. This commthat this job is really w
Initially the principal goal of the SONY/TEPCO partnership was to provide each other with expertise for our mutual benefit. This gradually developed, however, into a relationship in which the two companies were working together to improve energy efficiency throughout society, to visualize the future energy needs of society and to look for ways of solving problems as that society develops. Kuwahara notes, "The energy problem and the problem of global warming cannot be solved all at once. But I am convinced that no matter how difficult the issue may appear, SONY and TEPCO can solve them by working together with a common sense of values." SONY members are quick to talk about the potential of natural energy sources and, with the aim of popularizing these sources, the company has been a leader at adopting the Green Power Certification System.
Energy efficiency model projects such as the one that arose from this inter-company partnership will be increasing and spreading in the future, enabling exciting new energy efficiency improvements for all of society.
Yasuhiro KuwaharaFacility Management Dept.
Corporate Workplace Solutions
SONY Corporation
Yoko HikumaCorporate Marketing
TEPCO
SONY's CO2 efficiency index (before and after new system)
0
100
200
300
400
500
600
700
800
Before After
281 282
536
275234 226
480
203 191
520
194
505 501
(*) The unit RT stands for "refrigeration ton," and is a measure of cooling capacity.
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
g-CO2 / RT (*)
553 567 557
443 462 456 451
245
Sustainability Report 2005 9
Feature
Lifestyle Ideas
Ideas for a new, all-electric lifestyle
Earthquakes demonstrate safety of electric powerThe Ogawa family lives in an all-electric home in Saitama
City. They moved here from Tokyo three years ago so their child could live in a more natural area with a good living environment. Saitama, they found, was the perfect
environment to raise a child, being just an hour from central Tokyo but surrounded by peaceful farm fields.
Both Mariko and Hideo come from Nishinomiya City in Hyogo Prefecture where their family homes were damaged by
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2001 2002 2003 2004 (fiscal year)
(homes)
(*)All-electric percent: the percent of new all-electric homes to all new homes
The spread of all-electric homes (in TEPCO service area)(%)
0.00.51.01.52.02.53.03.54.04.55.05.56.06.56.4
4.4
2.4
0.9
4,400
11,000
22,000
32,000
All-electric percent (*)No. of omes
For half a century, TEPCO has helped people benefit from electric power. Long ago, children playing outdoors until dark would hurry home, feeling a sense of relief the moment they saw the light in their windows. One attraction of electric power is the way it warms the home. What other conveniences has electric power brought to the home in recent years? A father and daughter enjoy cooking a meal together on weekends. A boy comes home from football practice and takes a shower. A family gathers in the living room, telling stories to each other. All of them rely on electric power.
The number of all-electric homes being built today is rising rapidly as families look for a place to pursue new lifestyles. An all-electric home is one in which electricity provides the energy for cooking, hot water and room heating and cooling. In recent years houses tend to be airtight and highly insulated, elder-friendly or eco-friendly. Moreover, safety, particularly sturdiness against natural disasters, is in especially high demand. The speed with which the electricity lifeline can be restored has already been proven in the wake of the Great Hanshin Earthquake (1995) and Chuetsu Earthquake (2004), among others.
TEPCO recommends the comfort and convenience of clean electric power. All-electric homes are not only eco-friendly, they also support the future energy needs of society.
10 Sustainability Report 2005
More efficient household tasks mean more family timete part about her all-electric home is the(IH) Cooking Heater. "The heat is strong,
re setting very easy. Clean-up is easy too. ss time when I am cooking." Mariko says
at as a result, she has more free time. The with a satisfied look, "For my preschool- I can take the time for him to play at the
nds, and my husband and I have had more mornings are now so different. I used to be e to make breakfast, but now I can spend my family."ilability of high-efficiency appliances using is behind the growing popularity of all-
electric homes. One of the best examples is Eco Cute, an efficient hot water system that uses heat from the air to boil water. "I like the fact that the running cost is just 1,000 yen per month, and the fact that it fills the bath with hot water so fast," says Mariko.
All-electric home raises energy awarenessLiving in an all-electric home gives Mariko the chance to
live her ideal of an eco-friendly, energy saving life. She says, "In Winter I set the heat to 20 - 22℃, and in Summer I put the air conditioner at 26 - 28℃. I'm even careful to unplugelectrical products when they're not in use and not put any food in the refrigerator until it has cooled down. I even remind my husband not to keep the refrigerator door open for more than five seconds.
"Before, we used to spend about 7,000 yen in an average month for gas and the same for electricity. Now we spend nothing on gas. In addition, by practicing energy conservation, we've saved even more, and so far our greatest savings for light and heat energy in a month has been 7,000 yen."
Moving to an all-electric home has made Mariko more aware of energy conservation and encouraged her family to practice it. She says, "I hope my son will also try to live an eco-friendly life in the future, so we're starting to work on that now."
Aside from its tangible advantages (the cost savings and greater convenience), the all-electric home offers many intangible benefits, like greater environmental awareness and stronger family ties, that become apparent in day-to-day life. Mariko adds, "My parents in Kansai say that when they remodel, they're going to make their home all-electric."
Earthquake. After that event, it took two running water and six weeks to restore gas. aring meals and bathing were extremely
power, on the other hand, was restored in 10 back, Mariko says, "Our neighbor's bath by electricity. I was very jealous." Hideo the earthquake there was also some very
severe fire damage. I realized that in an all-electric home, you needn't worry about fire, since there is no flame. That experience set a very important standard for us when we were for us when we were fpicking out our new home." The Ogawas say that because of their experience during that disaster, they feel more assured living in an all-electric home.
Senior citizens appreciate all-electric homes too
Eiji SegawaSEKISUIHEIM SAITAMA Corporation
(homebuilding business)
Sustainability Report 2005 11
Feature
Typhoon 22 hits Tokyo
Giving my all for a fast recovery
Typhoon 22 started forming in the sea east of the Philippines on October 4, 2004 and grew stronger as it headed north. On October 9, it burst upon Japan's Izu Peninsula. TEPCO's Izu Service Center started preparing for an emergency the day before as the typhoon was drawing nearer. Our power distribution facility maintenance workers andoffice staff were in the office on duty. Hearing that a major typhoon was in the forecast, offices in adjacent districts also sent support.
Facility maintenance worker Kurihara recalls, "I started wondering whether the typhoon was really going to hit at all." A h ll i h h l l l
ringing loudly. The atmosphere at the office turned tumultuous as the bell then rang again and again.
Total rainfall was 300 - 400 mm, with a maximum one-hour precipitation of 75 mm at Yugashima Town, Izu City and a maximum instantaneous wind speed of 67.6 meters/second at Irozaki, Minami-Izu Town. TEPCO was now facing its largest typhoon ever.
The number of distribution lines without power came to 104, nearly half the 215 in the service area of Izu Service Center. The extent of damage was nearly inconceivable, considering that in the previous decade, the greatest number of li 21 S 65 000 h f
12 Sustainability Report 2005
Support for Restoration in Niigata and Fukushima prefecture suffered from the downpour in July, 2004
Facing our worst damage everThe Izu Peninsula is characterized by steep mountains, a
hilly terrain and forests of shallow-rooted coniferous trees. That makes it one of Japan's regions most susceptible to damage from wind and rain, which causes many landslides and downed trees as well as toppled utility poles and cut power lines. A number of areas are only accessible by a single road, and after Typhoon 22, roads in dozens of areas were blocked by earth or fallen trees, making the recovery work exceedingly difficult.
Ordinarily, restoration of service takes place in two steps. First, we use our power distribution control system to try to switch distribution routes in the area where power is out. If this does not succeed, we work with contractors and bring in special vehicles such as scissor lifts or pole carriers, and reconnect one site at a time. However, in this case, because of the road damage there were very few locations where such special vehicles could even pass. Therefore in almost all the areas where changing distribution routes failed to restore power,our maintenance workers and contractor employees had to find a way to work manually.
In facing the greatest disaster damage in our history, our staff members put the first priority on safely restoring power as soon as possible. Even after repairing many sites, TEPCO's staff members began to feel they would never be able to catch up. When the middle of three utility poles fell down, workers would simply skip the fallen one and string a line between the other two. They had to look at the state of the damage at the site, make a quick decision on what emergency measures to take and then get to work.
Where roads were not passable, workers could not reach sites until the obstructions were cleared. Kurihara says that where it was absolutely essential to get by to restore service,
"we either got in touch with our disaster response office or decided on the spot how to proceed." At one time, when Kurihara had to pass a washed out site on the way to another repair site, "I thought the local people would yell, 'Get over here and turn our power on,' but I was quite surprised when instead they asked with concern how we had managed to get that far." He adds, "At the repair site, people offered their vehicles for our transportation, or gave us food." Kurihara says that even in the midst of disaster, the local people were very warm and helpful.
The trial and triumph of restoring serviceIn the wake of Typhoon 22, TEPCO's maintenance workers
had to work a hard schedule under severe conditions, laboringthrough the first night, then taking naps in the office on the following days when they were not out working in the rain. According to Kurihara, what kept them going was the desire toget the power on and put the local citizens' minds at ease as
soon as possible. Involved in the recovery work were 1,411 TEPCO employees and 1,461 staff members from contractors. Within two days, 80 lines were back up, and on the third day the lines had fully recovered. Kurihara says the local people's aappreciative words were the most satisfying thing of all.
Learning from disaster
Sustainability Report 2005 13
Feature
Support for Restoration Efforts after Chuetsu Earthquake
Assessing home safetyJapan has a certification system for earthquake-
damaged building hazard assessors, specialists who determine the safety of homes against the aftershocks of an earthquake. I got my credentials immediately after the Great Hanshin Earthquake, but the Chuetsu Earthquake was my first time to go to an actual earthquake-damaged site and do a hazard assessment. At the scene, I could see fissures in the ground, and I recall the strong impression that the earth is really moving, and we humans and our buildings are really quite small.
On November 1-3, 2004, I was in Tokamachi in Niigata Prefecture, where I was one of a team of two that assessed about 40 houses. The evacuation advisory had already been lifted by this time and many residents had returned home, but many others were still uncertain whether their homes were safe, so I think our reports were another bit of information for making that decision.
I was careful to make our assessment reports as easy as possible to understand, staying away from specialized construction terminology. Having had no experience on the business side, I was confused by my role at first, but it was educational to me. Moreover, up to then, TEPCO's disaster prevention measures were focused on the "hard" side, especially things like building construction, but I came to believe that to reduce damage we also need to consider the "soft" side, such as the layout of office furniture within buildings. I hope to take full advantage of the things I learned at the damage site and apply them to my work from now on.
The October 2004 Chuetsu Earthquake in Niigata Prefecture caused deaths and injuries as well as damage to
homes and utility and transportation lifelines. TEPCO's Shinanogawa Power Station and Kashiwazaki-Kariwa
Nuclear Power Station are located in the region hardest struck by this seismic event. Staff members at these
plants and throughout TEPCO and its affiliates sprang into recovery work immediately after the earthquake struck.
The Chuetsu earthquake caused 300,000 customers to lose power. Most of these were in earthquake-damaged areas, but some spread over a very wide region. Acting at the request of Tohoku Electric Power, TEPCO dispatched 29 power generation vehicles and about 120 power distribution staff beginning October 24, the day after the disaster. These stayed four days, providing emergency power to evacuation centers, gas stations and others in Ojiya and Tokamachi cities.
TEPCO also worked with government organizations in the quake-damaged area to deliver emergency stockpiles of food, drinking water and supplies. While providing supplies, we took special care to respond appropriately to the needs of each area and the specific requests received. The result was that we sent drinking water, non-cook rice and canned foods as well as temporary toilets to places like Ojiya City, where the damage was extensive.
Supply trucks and helicopters (ordinarily used for inspecting power lines from above) were provided by an affiliate under an emergency relief transport agreement as TEPCO and its Group companies worked together to provide support.
Support for power outage recovery at Tohoku Electric Power
Personnel sent for service restoration efforts
Donations of supplies
TEPCO sent personnel support as needed at different stages of recovery. Immediately after the quake, staff members at Kashiwazaki-Kariwa Nuclear Power Station and Shinanogawa Power Station prepared and distributed support materials, and starting in November, about 130 staffers from main and branch offices performed tasks such as cleaning up in damaged homes and repairing roads in Ojiya and Tokamachi.
We also received calls for help from Tokamachi City and Oguni Town (now part of Nagaoka City), to whom we sent about 30 construction-related employees with qualifications as hazard assessors of earthquake-damaged buildings. These inspected about 380 houses for safety against secondary damage from aftershocks.
Yuichi YamagishiTokyo Branch Office
TEPCO
14 Sustainability Report 2005
Sustainability Report 2005 15
16
17
1816
19
20
Feature index
Group Management Principle
Governance System
Complying with Corporate Ethics
Group Charter of Corporate Conduct
Financial Highlights
ManagementSection
The Management Section introduces TEPCO's
Management Principle and governance system for
achieving a sustainable society.
Environment
Society
Economy
Contribute to better lifestyles and environments by providing superior energy services< Group Management Principle >
Win the Trust of Society
Foster People and Technologies< Management Guideline No.3 >
Compete and Succeed< Management Guideline No.2 >
Operating EfficiencyImprove efficiency by at least 20% compared with FY2004
Financial StructureIncrease shareholders' equity ratio to at least 25%
Business Growth● Electricity sales volume of at least 10 TWhIn businesses other than electric power :● Operating revenues of at least ¥600 billion● Operating income of at least ¥60 billion
Global EnvironmentReduce CO2 emission intensity by 20%
compared with FY1990
Numerical Targets 2010Eligibility to participate in the competitive market is "trust" that society places in us.
People and technologies open up the future for our Group.
Nothing makes the TEPCO Group happier than customer satisfaction.
16 Sustainability Report 2005
Management Section
Doing business mainly in the supply of electric power, theTEPCO Group has declared that "Contribute to better lifestylesand environments by providing superior energy services." Thisis a statement of our social mission and has become the TEPCOGroup's Management Principle.
Now that we are aware of global environmental problemsand understand the importance and necessity of taking care ofthe environment, we need to rethink the 20th century model oftechnological progress and mass energy consumption.Considering this backdrop, the TEPCO Group, as an energybusiness dealing primarily with electric power, has establisheda Management Principle stating clearly that we will help build arecirculating society, a sustainable society that consumesresources as little as possible.
In October 2004, we formulated Management Vision 2010,following the basic principles of TEPCO's Business Visionfrom 2001.
This document sets forth common policies and targets forthe entire TEPCO Group. It is based on the belief that in orderto respond flexibly to changes in the business environment andmeet customer needs aptly, TEPCO and its Group enterprisesmust work in closer partnership than ever before.
Three Group Management Guidelines spelling out specificways of reaching this goal are included in the GroupManagement Principle of Management Vision 2010: "Win theTrust of Society," "Survive the Struggle of Competition" and"Foster People and Technologies." Management Vision 2010also sets numerical targets to be reached by 2010 in five areas:operational efficiency, financial structure, business growth (twotargets) and global environment contributions.
Benefits derived from these efforts will be sharedappropriately with everyone involved in the TEPCO Group'sbusiness, including customers, the local community,shareholders/investors and employees.
We have additionally established Action Principles forTEPCO Group employees to keep always in mind as they striveto achieve Management Vision 2010. These are: Be Sensitive,Think, and Put into Practice.
Management Vision 2010Group Management Principle
Group Management PrincipleThe TEPCO Group responds flexibly to changes in the business environment and meets society's needs aptly
Management Vision 2010, the TEPCO Group's Medium-Term Management Policy
For Management Vision 2010 details, visit
http://www.tepco.co.jp/en/index-e.html
and follow the link to Corporate Overview.
Sustainability Report 2005 17
Management
Section
President
Risk Management CommitteeQuality and Safety CommitteeHuman Rights Committee
Environmental Management Panel
Group Environmental Committee
CSR Committee< MD for CSR >
< secretariat >Corporate Planning Dept.,
Environment Dept., Corporate Communications Dept.
Business Ethics Committee
(consisting of Chairman, President and outside experts)
CorporateCommunications Council
CSR LiaisonCouncil
Group CompanyPlanning Board
TEPCO reformed its management institutions in June 2004to increase management soundness and transparency and allowduties to be performed more promptly and efficiently.
Specific reforms included a smaller board of directors,greater decision-making and supervisory functions for theboard, and the preparation of a system in which persons incharge of specific duties could devote themselves wholly tothose duties. These reforms have clarified the relative positionof Directors dealing with TEPCO management issues and the
Executive Officers responsible for specific work duties.TEPCO has also revised its internal regulations and manuals,bolstered the auditing function by increasing the number ofOutside Auditors and prepared an internal audit system, all withthe objective of assuring that duties are executed rigidly andfairly within the Group.
Through initiatives such as these, TEPCO is increasing thesoundness and transparency of our management, assuring thetrust of customers, the community, shareholders and investors.We are also working to achieve continued growth and enhancelong-term corporate value by managing flexibly and efficiently.
Board of Directors reform (June 2004) ○Number of directors reduced from 32 to maximum of 20 (presently consists of 19, including 2 Outside Directors) ○Executives of rank Executive Vice President and higher become Representative Directors, Managing Directors become directors for specific work dutiesIntroduction of Executive Officer system○Executive Officers installed that are responsible for acting as officer for specific work duties○ Executive Officers are appointed from among Head Office General Managers, Branch Office General Managers, Nuclear Power Station
Superintendents, In-House Company Presidents and so on, depending on the importance of the dutiesStronger auditing function○ The majority of the 7 Auditors are Outside Auditors (presently, 4 are Outside Auditors)
Governance SystemReforming institutions for sounder, more transparent management
Corporate governance
Internal Auditors
Outside Auditors(more than half)
Accounting AuditorInternal Audit Department
Chairman President
Non-Executive Directors
Head Office General Managers
Branch Office General Managers
Nuclear Power Station Superintendents
In-House Company Presidents
Executive Vice President
Outside Directors Managing Directors
Board of Directors (max. 20 members) Execution of duties
Decision-making/supervision Executive Officers
Board of Auditors (7 members)
CSR promotional system
TEPCO management institutions
CSR Committee
Managing Director for CSR is chairman.Committee members include otherconcerned Directors and Head OfficeGeneral Managers. This committee meetsonce a month to deliberate on and givedirection to Group-wide CSR policies andimportant CSR issues.
Also, there is the EnvironmentalManagement Panel within the CSRCommittee. Its objective is to promoteenvironmental measures comprehensivelyin the TEPCO Group, set targets andenhance checks and reviews.
To fulfill its corporate social responsibility, TEPCO has setup internal systems dealing with many CSR issues, fromcorporate ethics, quality and safety, risk management toenvironmental and human rights concerns. Further, in July 2004
we installed a CSR Committee, chaired by the ManagingDirector for CSR, to promote and permanently instill CSRawareness and initiatives throughout the TEPCO Group.
18 Sustainability Report 2005
Management Section
TEPCO makes it a practice to "Clearly specify directionsand standards for observance of corporate ethics," "Systemprepared for assuring thorough corporate ethics and businessmanagement in line with societal norms," and "Encourage aclimate that assures compliance and create a corporate systemthat assures compliance." These three broad initiatives ensurethat corporate ethics are practiced in our business managementand take root in the organization.
These initiatives are subject to periodic monitoring, whichencourages the firm establishment of the practice of corporateethics at TEPCO. To make the observance of corporate ethicsmore thoroughgoing, monitoring results are used whenupdating our initiatives.
The Corporate Ethics Committee exists to set and carry outpolicies for the observance of corporate ethics and toinvestigate and respond to behavior running counter tocorporate ethics.
TEPCO uses different kinds of training to assure that ouremployees understand our "Standards of Behavior Related toObservance of Corporate Ethics" and that these standardsbecome firmly rooted.
Specific training methods include reading the Standards ofBehavior together or examining case studies in each workplace,and using online e-learning and video materials.
Since internal communication is utterly indispensable for theobservance of corporate ethics, the entire Group is working toencourage communication within the workplace and to makesuch improvements permanent.
The Ethics Line has been set up for consultation in caseswhere a violation of the law or corporate ethics has occurred. Itis available to TEPCO employees and others concerned withour business, including members of our business partners andGroup companies.
We report all contacts we receive to the Corporate EthicsCommittee, which, when necessary, discloses the nature of thecase to prevent its recurrence. Naturally, the privacy of thecontacting party is protected.
Clearly specify directions and standards for observance ofcorporate ethics
Diagram of TEPCO initiatives for corporate ethicsobservance
Clearly specify directions and standards for observance of corporate ethics
System prepared for assuring thorough corporate ethics and business management in line with societal norms
"Group Charter of Corporate Conduct" established
"Standards of Behavior for Corporate Ethics" established
Ethics Line
Training given to all employees on the observance of corporate ethics
Communication revitalizedOperations auditing and investigation strengthened
Thorough document and work record control
Preparation of regulations and manuals
Encourage a climate that assures compliance and create a corporate system that assures compliance
Parties responsible for corporate ethics clarified and corporate ethics staff installed
Legal department strengthenedand enriched
Corporate Ethics Committee Corporate Ethics Group
Monitoring
Put into practice, firmly establish
Corporate Ethics Committee
Consultation Center for Corporate Ethics
Board of Directors
President
Board of Auditors
Employees
Report, referrals Instructions
Consulting on TEPCO's work
Head Office
Branch offices, etc.
TEPCO
Business partner /group company employees
Group companies
Business partners
Corporate Ethics Group, General Affairs Dept.
Front - lineorganizations
Consulting
Promoting unit
Program for Observance of Corporate Ethics
Corporate Ethics Committee
Employee training
Establishment and operation of Ethics Line
Complying with Corporate EthicsAiming to nurture corporate ethics in all employees
[Members] Chair : Chairman (in charge of corporate ethics) Vice Chair : President Members : Outside experts (presently 4: an attorney,
2 academia members, the union committee chair)
Sustainability Report 2005 19
Management
Section
In April 2005, TEPCO Group companies joined together to address CSR, rebuilding the paradigm of how the
TEPCO Group should conduct its business activities and revising the TEPCO Charter of Corporate Conduct into the
TEPCO Group Charter Corporate Conduct.
Group Charter of Corporate ConductA solid foundation for all business activities of TEPCO Group employees
1. Respect for humanityWe put the highest priority on safety in every aspect of
our business activities. We observe the fundamental
principles of international society in regards to human
rights and respect these rights by refraining from
discrimination in all its forms and protecting personal
information.
2. Thoroughgoing corporate ethics In all our business activities, we practice
thoroughgoing corporate ethics by observing the letter
and the spirit of relevant laws and international rules
and acting in good faith.
3. Transparency of business activitiesWe communicate broadly with members of society
and conduct business activities as transparently as
possible. We further maintain healthy and proper
relationships with government bodies.
4. Products and services of high quality and safetyWe take every measure possible to assure quality
and safety for the trust and satisfaction of our
customers, providing them with valuable products and
services and constantly increasing this value.
5. Active engagement with environmental problemsWe actively endeavor to build a sustainable society by
solving global environmental problems, maintaining
the natural and human environments and working to
achieve optimal resource circulation.
6. Contribution to local community developmentAware that members of the community support us in
our business activities, we engage, as a good corporate
citizen, in activities that contribute to the development of
the local community.
7. A bright and energetic workplaceWe maintain a safe workplace conducive to the
performance of the job, and further create a bright
and energetic workplace that respects each employee's
character and individuality and enables employees to
demonstrate their autonomy and creativity.
TEPCO Group Corporate Code of Conduct Established April 6, 2005The mission of the TEPCO Group is to encourage dialogue with, and respond sincerely to the expectations and win the
trust of many persons concerned with our business activities, namely, customers, members of the community,
shareholders and investors, business partners, employees and members of society at large. We believe this is
fundamental to sustainable growth.
To assure that the TEPCO Group fulfills its social responsibility and that its bonds of trust with these persons never
waver, and recognizing that its existence depends on upholding fairness and ethical standards in every aspect of its
corporate conduct, the TEPCO Group acts in accordance with the following principles.
20 Sustainability Report 2005
304 billion yen
3.5%
7.2%
544 billion yen
880 GWh
8.59 trillion yen
16.2%
576 billion yen
411 billion yen
39,000
385 billion yen
4.0%
10.9%
892 billion yen
1.00 TWh
7.91 trillion yen
17.8%
464 billion yen
473 billion yen
38,500
350 billion yen
4% or more
-
About 500 billion yen
About 620 billion yen
About 460 billion yen
300 billion yen
4% or more
9% or more
550 billion yen
About 590 billion yen
About 460 billion yen
TargetsAverage for 3 years
(2004-2006)Average for 3 years
(2005-2007)
Results
FY1990 FY2004FY2003Management indicators
Ordinary profit
Return on assets (ROA)
Return on equity (ROE)
Free cash flow(*1)
Development of electricity sales
Interest-bearing debt(*2)
Shareholders equity ratio(*3)
Capital Investment
Maintenance expenditures
Number of employees
Ordinary incom
e / business activityW
ork efficiencyIm
provement of
financial standing
(3-year total)
Total 2004 - 2006
Aim for about 3.0 TWhTotal 2005 - 2007
Aim for about 4.0 TWh
End of FY2006
Aim for 20% or moreEnd of FY2007
Aim for 22% or more
End of FY2006
Aim for 37,500 or fewerEnd of FY2007
Aim for 37,500 or fewer
128 billion yen
6.3%
4.2%
-
-
8 trillion yen
12.5%
1.35 trillion yen
467 billion yen
39,600
Reduce 400 billion yenor more
Reduce 1 trillion yen or more
or more
or more
or more
(*1) Refers to funds available for the repayment of bonds or debts, payment of dividends to stockholders, development of new
businesses, etc. It is calculated by subtracting capital investment for power-related businesses from cash flow from sales.
(*2) Outstanding balance of corporate bonds and loans
(*3) Percentage created by dividing stockholders' equity by total capital
TEPCO sets medium-term targets for ordinary profit,business activity, improvement of financial standing and otherindicators to further strengthen the business. Our specific three-year action plan for meeting these targets is the ManagementPlan FY2005, announced in March 2005, based onManagement Vision 2010.
The current Management Plan designates certain issues forTEPCO's focus and sets major management targets that followthe three Management Guidelines set out in Management
Vision 2010. By carrying out this Management Plan, we arereaching for further growth and increases in corporate valuewhile putting all our effort into offering high-quality,inexpensive service and promoting efficiency in the workplace.In this way, we mean to ensure that we are the power providerof choice to customers even in an age of increasingcompetition.
TEPCO's results for the past two years and majormanagement targets from Management Plan FY2005 are asbelow.
(non-consolidated basis)
Financial HighlightsThe TEPCO Group's medium-term goals enhance competitiveness and financial strength
Management Section
Increasing financial strength
22
24
30
32
34
38
40
41
42
43
Feature index
Group Basic Environmental Philosophy
Environmental Management
Global Warming
Supply-Side Management
Demand-Side Management
International Cooperation
Air Pollution Prevention
Material Recycling
Biodiversity
Environmental Accounting
EnvironmentalSection
This section examines TEPCO's many environmental initiatives,
including its fight against global warming.
Companies participating in Group Environmental Committee from FY2004 (18)
In FY2004, the number of businesses participating in the Group Environmental Committee grew to 39.
Power generation Kimitsu Cooperative Thermal Porwer Company, lnc Kashima Kyodo Electric Power Company Soma Kyodo Power Co., Ltd. JOBAN JOINT POWER CO., LTD.Facility construction and maintenance Shin Nihon Helicopter Co., Ltd KANDENKO CO., LTD JAPAN UNCLEAR SECURITY SYSTEM CO., LTD TOKYO ENERGY & SYSTEMS INC.
Procurement TOKO ELECTRIC CORPORATION Takaoka Electric Mfg.CO., LtdEnergy & environmental business Japan Natural Energy Co., Ltd. JAPAN FACILITY SOLUTIONS, lnc. Cycle, lnc. Nature Craft Corporation TOKYO WATERFRONT RECYCLE POWER CO., LTD.
Information & communication business POWEREDCOM, lncorporated TEPCO CABLE TELEVISION lnc.Overseas Business Eurus Energy Holdings Corporation
22 Sustainability Report 2005
Environmental Section
Group Basic Environmental PhilosophyThe TEPCO Group works to solve numerous environmental problems
In June 2002, the TEPCO Group adopted the "basic principle" of the TEPCO Environmental Policy to serve as theTEPCO Group Basic Environmental Philosophy. Twenty-one major subsidiaries subscribe to this basic environmentalphilosophy to ensure that the entire Group practices effective environmental measures.
In addition, we have established the TEPCO Group Environmental Action Guidelines to stipulate key actions for the Group to perform.As a result, the Group has practiced uniform environmental management.
Group companies subject to environmental management (21)
Each of the 21 Group companies listed below has established its own environmental policies based on the TEPCO Group Basic Environmental Philosophy and Environmental Action Guidelines.
Power generation The Tokyo Electric Generation Company, Inc.Fuel supply Nanmei Kosan Co., Ltd. TEPCO-Yu Co., Ltd. Tepster Co., Ltd.Facility construction and maintenance Toden Kogyo Co., Ltd. Tokyo Electric Power Environmental Engineering Company, Inc. Tokyo Electric Power Services Co., Ltd. Tokyo Densetsu Service Co., Ltd. Tokyo Electric Power Home Service Co., Ltd.
Procurement Tokyo Keiki Kogyo Co., Ltd.Transportation & services Tokyo Living Service Co., Ltd. TEPCO Public Relations Co., Ltd. Toden Kokoku Co., Ltd. TEPCO Logistics Co., Ltd. Environmental Beautification Center Co., Ltd.Real estate management Toden Real Estate Co., Inc. Oze Ringyo Co., Ltd. Toshin Building Co., Ltd.
Energy & environmental business Tokyo City Service Co., Ltd.Information & communication business TEPCO Systems Corporation Tokyo Records Management Co., Inc.
The TEPCO Group's Environmental philosophy
The TEPCO Group's Environmental PhilosophyThe TEPCO Group will:
○We will fulfill social responsibilities as a business enterprise to pavethe way for sustainable development in the 21st century bytaking positive measures for the solution of environmentalproblems, including global warming;
○ Endeavor to achieve the reduction of environmental risks,including air pollution control, by continually improving theenvironmental management system, while carrying out eco-efficient business activities with consideration given to thereduction of CO2 emissions, waste recycling, and energy andresource conservation; and
○ Aim to create a society suitable for the 21st century byincreasing the transparency of corporate activities throughextensive information disclosure while repeatedly holding aninteractive dialogue with customers, investors and other peopleinterested in our business operations.
TEPCO Group Environmental ActionGuidelines○ Environmental Management● Establishment and continual improvement of an
environmental management system●Compliance with the applicable laws and ordinances● Implementation of educational programs for employees●Promotion of green procurement○ Environmental Preservation●Reduction of greenhouses gas emissions●Promotion of waste recycling●Promotion of energy and resource conservation○ Environmental Communication ●Establishment of an environmental partnership with
society
Sustainability Report 2005 23
Environmental
Section
Environmental
Section
FY2005
TEPCO Environmental Policy
Environmental Management
● Management personnel will periodically perform checks and reviews and environmental audits on the state of our environmental
management (e.g. environmental management system operations and level of attainment of environmental objectives and targets).
● As well as observing environmental regulations stipulated in laws and ordinances, we will ensure that our work is carried out in
compliance with internal rules.
●We will enhance environmental education to ensure that all of our employees have a high environmental awareness and always include
environmental considerations in the execution of their work.
● To reduce environmental risk in the TEPCO Group and improve our environmental performance, we will support attempts by
Group companies to upgrade the levels of their environmental management.
●We will enhance green purchasing and procurement to promote environmental protection in cooperation with our business partners.
Environmental Protection, Conservation of Energy and Resources
● We will continue to implement measures aimed at preventing air pollution, protecting nature, etc., and will strive to prevent
pollution.
●We will strive to reduce emissions of carbon dioxide and other greenhouse gases in a bid to mitigate global warming, by promoting safe
and reliable operation of nuclear power stations, improving the thermal efficiency of thermal power generation and expanding our use
of renewable energies.
●We will further promote energy and resource conservation activities in our daily work. We will also help to create a society with high
energy efficiency centered on electric power, by diffusing high-efficiency appliances and systems with excellent economic, energy and
environmental performance.
●We will positively tackle issues such as making efficient use of natural resources, recycling waste, and stripping and recycling PCB
insulating oil, and will thereby contribute to creating a resource-recycling society.
●For PCB equipment, we will respond correctly to the issues at hand and take rigorous steps for storage and management based on long-
term perspectives.
● We will constantly pursue and develop leading-edge technology, and, using the outcomes and resources, will contribute to
environmental protection as well as energy and resource conservation activities on a global level in cooperation with the
international community.
Communication
● To improve the objectivity and transparency of our corporate activities, we will take every opportunity to convey, in easily
understandable terms, information on our efforts for sustainable development.
● As well as enhancing our support activities for education on energy and the environment, we will make broad proposals to society
concerning readily available ways of preventing global warming, such as changing to eco-friendly lifestyles, and concerning ways to
reduce carbon dioxide emissions from the consumer and transportation sectors by innovating social systems.
● We will make maximum use of opportunities such as business activities, social contributions and international cooperation to
strengthen ties of environmental partnership, such as developing cooperative activities with our stakeholders.
Each year the President of TEPCO creates a TEPCO Environmental Policy based on the TEPCO Group BasicEnvironmental Philosophy. This policy derives from TEPCO's basic environmental protection stance, and all employeesbecome thoroughly familiar with it.
Reinforcing this, superintendents of branch offices, power stations and other local facilities write environmental policies for their sites,based on the TEPCO Environmental Policy but customized to reflect their particular circumstances and the nature of their work.
TEPCO Environmental Policy
24 Sustainability Report 2005
Environmental Section
Environmental ManagementWorking with Group companies in multifaceted environmental measures
TEPCO, along with its Group companies, endeavors tostep up environmental management and build theorganizations needed to promote it.
Branch offices, power stations and all facilities engagedin environmental protection devise and run ISO 14001-based environmental management systems.
● CSR Committee and Environmental Management Panel TEPCO's Comprehensive Environmental Committee formed
in 1993 as an inter-departmental structure for the deliberationand promotion of general environmental management andimplementation throughout the Group. When the CSRCommittee was installed in July 2004, it inherited the functionsof the old committee. The CSR Committee then established asubordinate group, the Environmental Management Panel, toperform those specific functions.
The Environmental Management Panel plays the importantrole of promoting Group environmental measures generally,setting targets and facilitating checks and reviews.
● TEPCO Advisory Committee on Environmental AffairsThis committee, established in April 1993, meets once a
year to enhance environmental management. It consists ofoutside experts and specialists, which adds an importantindependent perspective to TEPCO's own efforts. Thecommittee gives valuable advice on our management ofenvironmental problems. (See "Opinion of TEPCO AdvisoryCommittee on Environmental Affairs," pages 75 - 77.)
● Group Environmental CommitteeMembers of TEPCO and 39 major affiliates combine to
form the Group Environmental Committee and promoteenvironmental management for the entire Group under thedirection of the TEPCO Group Basic EnvironmentalPhilosophy. Of the membership, representatives from 21companies deal with environmental management by settingcommon key performance goals.
During FY2004 TEPCO was not subject to anyimprovement orders or penalties stemming from violations ofenvironmental laws or ordinances.
Environmental management systems
Legal compliance
TEPCO Advisory Committee on Environmental Affairs
Environmental Management PanelCSR Committee
Group Environmental Committee
Head Office
General Managers
Environmental Audit Team
Environmental officials
Departments
Front-line workplacesservice centers, thermal power stations, etc.
AuditorsPresident Board of Managing Directors
Environmental Dept.
Related departments(departments with
environmental responsibility)
Chair: Environmental management officerMembers: Department managers, front-line workplace directors, etc.
Environmental Committee
Branch offices (10), power system offices (3), thermal power offices (3),nuclear power stations (3), power plant construction offices (5)
Chair: Director for environmental affairsMembers: Department general managersSecretariat: Environmental Dept.
Chair: General Manager, Environmental Dept.Vice-Chair: selected from Group companiesSecretariat: Environmental Dept., TEPCO
As based on the manual for EMS (TEPCO) established in April 2004, TEPCO's environmental management system is organized as below, with thePresident bearing highest responsibility for environmental management.
The office and all three construction offices under its jurisdiction
All business sites within its jurisdiction
Branch headquarters and part of Chiba Service Center
Kannagawa Hydroelectric Power Plant Construction Office
Yamanashi Branch Office
Chiba Branch Office
Tokyo Branch Office
Kashiwazaki-Kariwa Nuclear Power Station
Higashi Thermal Power Office
Nishi Thermal Power Office
Shibuya Service Center
Inside the power station premises
The Head Office and all thermal power stations under its jurisdictionThe Head Office plus Minami Yokohama, Higashi Ohgishima and Yokohama Thermal Power Stations (*)
(*)Yokohama Thermal Power Station added to scope of registration on September 24, 2004
November 1, 1999
Scope of registrationSite name Date
December 27, 1999
March 29, 2000
May 25, 2001
August 20, 2001
February 25, 2002
March 25, 2003
ISO 14001 certification
Environmental management organization
Sustainability Report 2005 25
Environmental
Section
Major environmental impacts of the power generation business are selected as environmental indicators, and TEPCO thensets quantifiable targets whenever possible. The Group then takes action to achieve those targets.
Inputs / outputs
155.5 TWh
93.5 TWh
12.8 TWh
54.1 TWh
15,000 MWh
CO2SOxNOx
Accumulation of solid radioactive waste192,890 X 200L drum canisters
Transmission loss 14.3 TW
hP
ower used
in substations 0.4 TW
h
● Wastewater● Industrial waste landfill disposal volume● Power used in power stations
7.42 million m3
1,500 t10.3 TWh
includes-Volume used in TEPCO offices
0.251 TWh
301.5 TWh
Powergenerated
Purchasedfrom othercompanies
Thermal power generation
Nuclear power generation
Hydroelectric power generation
Coal 3.37 million tHeavy oil 4.17 million tCrude oil 2.17 million tNGL 10,000 kLLNG / LPG 17.0 million tNatural gas 210 million Nm3
City gas 1.22 billion Nm3
Light oil 30,000 kL 9.47 million m3
Transmittedpower
Water for power generation
(*) approx. 272 t
1.14 million m3
109.2 million t20,000 t27,000 t
Nuclear power fuel
Water for power generation
Power for pumping water 4.0 TWh
Natural energypower generation
PhotovoltaicsWind powerGeothermal energy
Power sold to customers
286.7TWh
Figures may not add exactly due to rounding.
(*) Amount of uranium fuel required for amount of energy input (based on design values)
70 75 80 85 90 95 2000 0504 2010(FY)
41.9
Designed thermal efficiency by class
Thermal efficiency of thermal power generation(gross thermal
efficiency for steam power)
Unit 1 Kashima(600MW unit)
Unit 5 & 6 Kashima(1GW unit)40.8%
Futtsu Group 1 & 2(combined cycle, single shaft 165MW class) 42.7% (47.2%)
Yokohama Group 7 & 8(ACC, single shaft 350MW class) 49.0% (54.2%)
Futtsu Group 3(ACC, single shaft 380MW class) 50.0% (55.3%)
Kawasaki Group 1(MACC, single shaft 500MW class) approx. 53% (approx. 59%)
35
40
45
50
55
60(%)
40.3
38.3
FY2004 resultsBy improving our recovery methods we recovered 93% of
CFCs during our periodic inspections of air conditioning forlarge machines (such as power generation equipment).
Initiatives hereafterTEPCO will continue its CFC emissions control and
strive for its target by internally developing techniques forimproving recovery.
(*)The thermal efficiency of thermal power generation iscalculated from the Higher Heating Value (HHV). Figures in parentheses are based on Lower Heating Value(LHV).The difference between the two depends on whethercondensation heat from moisture in fuel and moistureproduced through combustion are included as calorific value.HHV includes condensation heat, thus the calorific value ishigher and the thermal efficiency is lower.
Environmental Indicator Highlights
TEPCO follows 45 unique environmental indicators, setting targets and tracking levels of accomplishment on each one in aprocess of checks and reviews. The following environmental indicator highlights introduce some of the major indicators.
(100,000t-CO2)(100,000 MWh)
(FY)
(kg-CO2/kWh)0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
3000
2500
2000
1500
1000
500
070 75 80 85 90 95 2000 04
2867
2807
1092922910841
2544
0.358
0.382
0.328
0.381
2199
Electricity sales [left scale] CO2 emissions [left scale]CO2 emissions intensity (emissions per unit of electricity sales) [right scale]
FY2004 resultsBecause our nuclear power capacity utilization
rate rose from 26.3% in FY2003 to 61.7% last year,CO2 emissions decreased 18 million tons. Emissionsper unit of electricity sales (the CO2 emissionsintensity) equaled 0.381kg-CO2/kWh, or 17% lowerthan in FY2003.
Initiatives hereafterLooking to reach its FY2010 targets, TEPCO plans to
take steps on both the demand and supply sides,including use of the Kyoto Mechanism.
FY2004 resultsBy efficiently running Advanced Combined
Cycle (ACC) systems improved for even greaterthermal efficiency, we were able to achieve a level of41.9%, maintaining the previous year's level.
Initiatives hereafterTEPCO will continue to run ACC systems
efficiently and introduce even more efficient1450℃ More Advanced Combined Cycle (MACC)systems to push the level of thermal efficiencyeven higher.
FY2004 results: 93%
Target approximately 0.31kg-CO2/kWh sales in FY2010 (20% reduction vs. FY1990)
Target 42.4% or more in FY2009
Target Recover 95% when performing periodic inspection of air conditioning for equipment in FY2007
26 Sustainability Report 2005
Environmental Section
Chlorofluorocarbons(CFCs)
Thermal power generation efficiency
CO2 emissions intensity
0
50
100
150
200
250
300
350(Units: 1,000 MWh)
305
2000 2001 2002 2003 2004 2005
298278
241 251258
2005targets
(L/km)
2000 2001 2002 2003 2004 2005
0.1120.109
0.105
0.099 0.098 2005targets
0.089
0.080
0.085
0.090
0.095
0.100
0.105
0.110
0.115
0.120
0
50
100
150
200
250(10,000 m3)
222
2000 2001 2002 2003 2004 2005
2005targets
194
142 136
188165
0.00.51.01.52.02.53.03.54.04.5(100 million sheets (A4 equivalent))
4.0
2000 2001 2002 2003 2004 2005
3.63.3
2.9 3.0 2005targets
2.0
FY2004 resultsWe have met our FY2005 targets for office-use
electricity and water ahead of schedule. We were unable tomeet our FY2004 targets for vehicle fuel and printerpaper.
Initiatives hereafterAiming to meet our FY2005 targets, the Group will
undertake a variety of hard-side and operations-sidemeasures.
FY2004 results and initiatives hereafter With thorough recovery during machine inspection and scrapping,TEPCO was able to reach its targets. We will continue to use recovery equipment and maintain our high recovery rates.
FY2004 resultsResults of a Group-wide effort for green purchasing
yielded a three-point increase over FY2003.
Initiatives hereafterTEPCO will actively purchase eco products.
0102030405060708090
100(%)
2002 2003 2004 2005
8596 99
2005 targets100
Electricity used in offices Water usage
Fuel economy (fuel consumption per distance traveled) Paper purchased for copiers and printers
FY2004 results: 99% during machine inspection and 99% when scrapping
Target FY2005 recovery rate 97% during machine inspection and 99% when scrapping
Target 100% in FY2005
Sustainability Report 2005 27
Environmental
Section
Sulfur hexafluoride (SF6)
Employee initiatives
Green purchasing rate
(*) Green purchasing rate= Total purchase amount of Green-Eco products among the denominators
Total purchase amount of categories subject to Green PurchasingGuidelines
SOx, NOx
FY2004 resultsBecause our nuclear power capacity utilization rate
rose from 26.3% in FY2003 to 61.7% last year, SOx andNOx emissions fell by about 30% - 40% from theprevious year to 20,000 tons and 27,000 tonsrespectively. Emissions of SOx and NOx per unit ofpower generated fell more than 30% compared toFY2003, maintaining one of the lowest levels in theworld.
Initiatives hereafterWe will maintain our preeminent performance by
continuing to address these emissions from fuel,equipment and operations angles.
[Reference] World-leading air pollution countermeasures
A mixture of good fuels, equipment to clean fluegas of sulfur and nitrogen and thoroughgoingcombustion control has brought TEPCO thermalpower station SOx and NOx emissions well below thelegal maximum and ranks us among the leaders ofthe world's most advanced nations.
0102030405060708090
100(%)
10
2001 2002 2003 2004 2010
21
37
51
2010 targets100
0
50
100
150
200
250
300(vehicles)
132
2000 2001 2002 2003 2004
137 145
191
246
FY2004 resultsOur LEV introduction rate has risen because whenever a
vehicle is retired, we replace it with an LEV.
Initiatives hereafterThe entire Group is actively introducing LEVs.
[Reference] Introduction of electric carsTEPCO's business fleet has included electric vehicles for
more than 30 years, and TEPCO continues to use these toimprove fuel economy and reduce emissions.
Low-emission vehicle (LEV) introduction rate
No. of electric vehicles in fleet
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
75 80 85 90 95 2000 04
SOxNOx
(g/kWh)
0.080.070.120.170.18
0.24
0.70
0.100.10
0.150.22
0.25
0.40
0.76
(FY)
SOx and NOx emissions intensity (all power stations)
(g/kWh)3.9
1.9 1.9 1.9
0.7 0.6
1.7
0.7
2.6
1.5
3.7
1.7
3.2
1.5
0.20.3
0.130.18
Canada France Germany Italy England USA Six-nationaverage
Japan TEPCO(FY2003) (FY2004)
SOx emissionsintensity
NOx emissionsintensity
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
International comparison of SOx and NOx emissions intensity(average for thermal power stations)
Source: Calculations based on OECD Environmental DataCompendium 2004 and Energy Balances of OECDCountries 2001-2002.Figures for Japan based on survey by the Federation ofElectric Power Companies of Japan Data for other than Japan and TEPCO are from 2002
(*) Includes LEVs certified by Ministry of Land, Infrastructure andTransport, as well as electric vehicles and hybrids. Special types of vehicles for which LEV versions are not available arenot included in the calculation of introduction rate.
Target For both, emissions intensity 0.1g/kWh or less in FY2009 (all power sources)
Target 100% implementation by FY2010
Environmental Section
28 Sustainability Report 2005
Low-emission vehicles (LEV) (*)
Industrial waste
FY2004 resultsTEPCO's recycling rate has risen to 99.7%
thanks to relations with new recycling companiesand internal development of efficient collectionand shipment methods that had been investigated ata model workplace.
Initiatives hereafterOur goal is to achieve 100% recycling in
FY2005. We will continue our current recyclingprograms and emphasize wastes that currentlyhave a low recycling rate, for example by focusing onthe efficient collecting and shipping of low-volumewastes.
Economic effects
Power generation fuelcost reductions
Material procurementcost reductions
Recycling sale revenues
Monetaryeffect
630
0
4
112
Reductions in the costsof energy and resourcesfor internal uses
(Units: 100 million yen)
Coal ash
Scrapped concrete utility poles
Gypsum recovered through desulfurization
Metal scrap
Waste oil
Shells
Wastewater treatment sludge
Heavy / crude oil ash
Insulator scrap
Concrete scrap
Waste plastics
Thermal insulation material scrap
Other
Total
Cement raw material, land reclamation
Roadbed material
Gypsum board
Metal material, recycled cable, etc.
Fuel substitute, heat recovery, etc.
Fertilizer, cement raw material, soil conditioner, etc.
Raw material for cement, steel, etc.
Metal recovery, cement raw material, etc.
Tile and roadbed material, etc.
Roadbed material, etc.
Plastic recycling, heat recovery, etc.
Recycled thermal insulation material, cement raw material, etc.
-
Type of waste Recycling application
477.5
99.6
77.3
49.5
9.4
7.4
5.4
4.4
2.7
1.9
1.6
1.4
5.9
744.1
Waste produced[1,000 t / year]
477.5
99.6
77.3
49.5
9.4
6.4
5.4
4.4
2.7
1.9
1.5
1.3
5.3
742.3
Recycled volume[1,000 t / year]
100.0
100.0
100.0
100.0
99.7
86.0
100.0
100.0
98.5
100.0
96.9
97.2
88.8
99.7
Recycling rate[%]
Recycling ratebreakdown ofmajor wastes
Internal economic effects
0
1
2
3
4
5
(FY)
86
99.7
3.88
(10,000 t)
03 040201200099989796959493929190
0.1585
90
95
100(%)
Wastes going to landfill [left scale]Recycling rate [right scale]
Wastes going to landfill / recycling rate
FY2004 resultsWe calculate the additional costs of all efforts wholly or
partial ly dedicated to the goal of environmentalprotection as the "cost of environmental protectionmeasures."
The ratio of FY2004's cost of environmental protection
measures to all costs was 14.5% for investments, 1.8%for costs, and therefore about the same as ordinaryyears.
Target 100% recycling in FY2005
Environmental
Section
2000
1.8 1.6 1.7 2.5
15.2
12.3
16.4 16.214.5
1.8
01 02 03 04 (FY)
(%)
Ratio of environmental measures investmentsto total investments (excluding nuclear fuels)
Ratio of environmental measures costs to operating costs
0
5
10
15
20
Ratio of environmental measures coststo total costs
2000
1154
870 906
785 803 770 764
1110
536
790
2001 2002 2003 2004 (FY)
(100 million yen)
0
200
400
600
800
1000
1200
Investments Expenditures
Trends in the cost of environmental protection measures
Sustainability Report 2005 29
Cost and effect of environmental measures
30 Sustainability Report 2005
Environmental Section
Global WarmingTargeting CO2 emission reductions on multiple fronts
TEPCO is striving for CO2 reductions on both thesupply and demand sides
The amount of CO2 emissions attributable to the powerconsumption can be calculated by the following formula.
"CO2 emission intensity" is a value that directly reflects anelectric power company's efforts to reduce CO2 emissions.TEPCO's Management Vision 2010 aims to achieve an FY2010CO2 emission intensity 20% lower than the benchmark yearFY1990, and to reach this goal we are taking action on thesupply side, in part by expanding the generation of nuclearpower with an emphasis on safety.
On the other hand, usage of electric power goes up anddown according to the weather and customer needs, and is notsomething that a power company can directly control.
Ultimately, emissions can only be reduced by targeting bothCO2 emission intensity and raising the efficiency in powerconsumption. For that reason, TEPCO is actively helpingcustomers use power efficiently and reducing CO2 emmisionsthrough partnership programs, while working to reduce its ownCO2 emission intensity.
CO2 emissions in FY2004 totaled approximately 109 milliontons at TEPCO, which is 18 million tons less than the previousyear. This is largely because our nuclear power station facilityusage rate went up from 26.3% to 61.7% in the same time.
Our CO2 emission intensity in FY2004 was 0.381kg-CO2/kWh, a 17% reduction made possible by growing salesbecause of record heat and other factors.
Pursuing the best mix of power sources
Promoting natural energy sources
Supply-Side Management
Demand-Side Management
The ECO Support Plan
Developing and promoting high-efficiency equipment
Proposals for eco-friendly life
International cooperation
The Kyoto Mechanisms
P.32
P.33
P.36
P.35
P.37
P.38
FY2004 results
CO2 emission intensity reduction targets
Calculating CO2 reductions from energy conservation
The amount of CO2 reductions as a result of energy conservation is theoretically the differencein emissions levels as in Formula (1) below, but in common, the simplified Formula (2) is used.
Formula (1): CO2 reductions from energy conservation measures = total CO2 emissions before measures - total CO2 emissions after measures
Formula (2): CO2 reductions from energy conservation measures = amount of power savings from measures X CO2 emission intensity
For example, if the energy conservation measure is replacing appliances with high-efficientones, Formula (2) yields the following results.Amount of power savings from measures X CO2 emission intensity
= amount of power savings from replacement (2,000kWh/year) X e