The Shindengen Group has introduced environmental accounting to better promote effective environmental management.It identifies and discloses environmental conservation costs and benefits quantitatively (economic benefits in monetary values and environmental impacts in physical units).
The below figures are calculated or estimated according to our own standards and the Environmental Accounting Guidelines of the Ministry of the Environment, Japan.

Environmental Conservation Cost

（Unit: ￥million） 

Category		ltem	FY 2021		FY 2022
			Investment	Cost	Investment	Cost
1. Business area cost			41	484	281	359
Breakdown	Pollution prevention cost	Prevention of air or water pollution costs	9	179	13	155
	Global environmental conservation cost	Introduction of energy-saving facility costs	31	54	267	64
	Recycling, disposal costs	Recycling or disposal of industrial waste costs	1	251	0	140
2. Upstream/downstream cost		Cost of green procurement, and cost of analytical instruments	0	46	0	88
3. Administration cost		Environmental education fees, certification costs, and internal audit costs	0	264	0	357
4. R&D cost		Development of energy-saving and highly efficient products and repid chargeres for EVs	0	234	0	175
5. Social activity costs		Participation in local community environmental activities	0	2	0	2
6. Environmental remediation costs		Remediation of contaminated soil and groundwater	0	38	0	175
Total			41	1,067	281	1,155

Notes: Some numbers are estimates. Totals are subject to rounding differences.

Environmental Conservation Benefit

Economic Benefit associated with environmental conservation activities

（Unit: ￥million） 

Item		FY 2021	FY 2022
Revenue	Revenues from sale of recycled products	690	860
Expense reduction	Energy expense savings from energy conservation (electricity, fuel oil, etc.)	85	41
	Disposal cost savings from reduced material usage or recycling	2	5
	Other expense savings from environmental improvements	0	0
Total		778	906

Environmental Conservation Benefit (physical quantities)

Item	Unit	FY 2021	FY 2022
CO2 emissions	t-CO2	76,448	78,425
Electricity consumption	GWh	142	145
Fuel oil consumption	ｋℓ	1,742	1,662
Water consumption	1000m3	1,872	1,809
Amount of waste	t	206	226
Amount of material recycled	t	5,586	5,456

Notes:
*CO₂ emission factors of Japanese electric power:We use the emission factors of electric power company published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry.
*CO₂ emission factors of overseas electric power:We use emission factors of each country announced by the GHG Protocol (Greenhouse Gas Protocol Initiative).