Toshiba: Japan's Environmental Goal Might Benefit Our Business

Feb 5, 2010 18:14 Kenichi Takata, Nikkei Monozukuri

Toshiba Corp announced that it is now estimating how the Japanese government's medium-term goal for greenhouse gas mitigation will influence the company's business at its trade show running from Feb 4 to 5, 2010.

While the greenhouse gas mitigation will increase the costs for environmental measures such as at manufacturing plants, it will boost Toshiba's businesses of nuclear power generation and energy-saving home electric appliances, the company said.

The Japanese government's medium-term goal is to reduce greenhouse gas emissions by 25% from 1990 levels by the year 2020 under the premise that a framework is established for major emitters of greenhouse gases to join.

If this is converted to the greenhouse gas emissions of the Toshiba Group, it is necessary to reduce emissions by 30% from 2005 levels by the year 2020.

"With the environmental measures that can currently be taken, we can reduce greenhouse gas emissions only by about 20%," Toshiba said.

So, the company will have to take additional measures for the reduction.

Normally, environmental measures for manufacturing plants and offices increase costs. But, at the same time, they will boost the businesses of nuclear, wind and photovoltaic power generation, smart grids and energy-saving home electric appliances. In fact, Toshiba could not precisely predict whether the 25% goal will increase or decrease the sales amount and the profit of the entire group.

"There is some uncertainty because the administration has not disclosed what kinds of measures it is considering," Toshiba said. "But, depending on the measures, our business might benefit from them."

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