Survey on Environmental Protection Expenditures in Industry, 2018

Methodological Note on the Survey on Environmental Protection Expenditures in Industry, 2018

In accordance with the provisions of Regulation (EC) No. 295/2008 of the European Parliament and the Council concerning structural business
statistics, as well as with the requirements of the relevant Eurostat/OECD questionnaire, the Statistical Service is conducting as from the reference year 2001 a survey on environmental protection activities in industrial enterprises. The survey is included in the regular work programme of the Statistical Service and is carried out on an annual basis.
Coverage and Sample Selection
The survey covers mining and quarrying (NACE Rev. 2, section B),
manufacturing (NACE Rev. 2, section C), electricity, gas, steam and air conditioning supply (NACE Rev. 2, section D) and water collection, treatment and supply (NACE Rev. 2, division 36).
The survey follows the appropriate methodology, concepts and definitions, at the prescribed degree of detail and coverage.
For the determination of the sample of enterprises to be interviewed, the business register is used. Enterprises classified in the electricity and
water sectors are fully covered due to their small number. The mining and quarrying and manufacturing industries are covered on a sample basis.
Size class is used as the selection criterion. All enterprises employing 20 persons and more are included in the sample. For smaller enterprises, a sample of predetermined size by economic activity is selected systematically with probability proportional to size.
The resulting sample for the year 2018 survey numbered 798 enterprises, of
which 37 classified in section B, 754 in section C, 1 in section D and 6 in division 36 of the NACE Rev. 2 statistical classification of economic activities.
Data Collection
Data collection is done by means of a personal interview at the enterprises’ premises. For this purpose, casual enumerators are recruited, who are appropriately trained to carry out these interviews and fill in
the questionnaire with the required information. They are expected to be in a position to explain to the entrepreneurs the scope of the survey and the terms used in the questionnaire and to assist them in distinguishing which activities qualify for inclusion as pollution abatement and control activities.
A letter is mailed to all enterprises selected in the sample, informing them about the survey and requesting their cooperation. They are also made
aware that an enumerator will shortly contact them for the filling in of the questionnaire. The survey questionnaire is available for download from the web site of the Statistical Service.
As with the grand majority of surveys carried out in Cyprus, this survey as well achieves a very high response rate of over 95%. It is worth mentioning that even this small proportion of non-response is not the result of the enterprises’ refusal to cooperate; it can rather be
attributed to deficiencies in the business register and, in particular, to its failure to capture in time the closing down of some enterprises.
Definitions Used
Environmental protection: is defined as any action or activity whose main purpose is the collection, treatment, reduction, prevention or elimination of pollution and pollutants or any other degradation of the environment resulting from the operating activity of an enterprise.

All actions and activities where the primary function is environmental protection are included, regardless of whether they are undertaken in response to environmental legislation, to meet demands of customers, to improve company image, etc. However, actions and activities that are beneficial to the environment but whose main purpose is not environmental protection and have been taken regardless of environmental protection considerations are excluded.

Examples of such activities are: treatment of waste and waste water, elimination or reduction of emissions of air pollutants, protection of soils and ground water, abatement or reduction of noise and vibration, protection of natural resources and biodiversity, as well as the monitoring of the quality of the environment and the control of waste production etc.
Environmental protection expenditure: is the sum of capital investments
and current expenditures for the undertaking of environmental protection activities.
Investments on technologies for environmental protection: investments on technologies (integrated or end-of-pipe) which aim at the prevention, reduction and treatment of pollution and the management of emissions (air, waste water, solid waste, noise, etc.) into the environment that are created during the production process. Also included are appendages,
upkeep and improvements that increase the lifetime or the capacity of existing facilities.
End-of-pipe investments: consist of identifiable and distinct equipment and/or installations, which function independently at the end of the production cycle, where the release of pollution into the environment occurs. This equipment handles pollution already generated, with the prevention, control and monitoring of the emission of pollutants freed in
the environment. The investment is estimated from the purchasing price, the cost of planting the installation, etc. The purchasing of land to install the equipment is included. Expenditures that aim at safety or health at the work place are excluded.
Investments in integrated technologies: refer to installations (or part of them) that have been adapted in order to generate less pollution or to measure the pollution level. This equipment is integrated in the
production process and cannot be identified as separate parts.
Internal current expenditures: concern all current expenditures on environmental protection except purchases of environmental protection services from external bodies. It includes the consumption of energy and materials in the execution of environmental protection activities, the purchase of environmentally friendly goods, the use of the enterprise’s own staff for environmental protection purposes, the operation of
environmental protection equipment (e.g. labour costs, maintenance of equipment), general administration (e.g. setting up and maintaining environmental information systems), etc.
Expenditures for bought services: refer to all fees, charges and similar payments to external bodies (outside the reporting unit), in exchange for environmental protection services. They include payments for the collection and treatment of solid waste and waste water, payments to
environmental consultants (e.g. related to education of staff, operation and maintenance of environmental protection equipment and facilities), etc.
Income from environmental protection activities: income of the enterprise from selling environmental services to other enterprises or institutions (for example, treatment of industrial waste of other enterprises), income from subsidies from the public sector, subsidies from non public bodies, revenues from by-products (such as income from the reuse of materials
resulting from environmental protection activities, income resulting from selling such products to other enterprises or organisations, etc.) and other income not included in any of the previous categories and which is resulting from environmental protection activities.

Last updated: 09/07/2020