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 by the Ministry of the Environment, Japan.
Environmental Conservation Costs
Unit: million yen
|Category||Description||FY 2016||FY 2017|
|1. Business area costs||89||295||142||279|
|Breakdown||Pollution prevention costs||Prevention of air or water pollution costs||72||139||27||157|
|Global environmental conservation costs||Introduction of energy-saving facility costs||15||39||113||
|Recycling, disposal costs||Recycling or disposal of industrial waste costs||2||117||2||90|
|2. Upstream/downstream costs||Cost of green procurement, and cost of analytical instruments||0||15||6||11|
|3. Administration costs||Environmental education fees, certification costs, and internal audit costs||0||212||0||231|
|4. R&D costs||Development of smart energy management system, power conditioner for solar power generation, ECU with idling function, and chargers for EV/PHEV||
|5. Social activity costs||Participation in local community environmental activities||0||4||0||4|
|6. Environmental remediation costs||Remediation of contaminated soil and groundwater||0||29||34||27|
Notes: Some numbers are estimates. Totals are subject to rounding differences.
Environmental Conservation Benefits
Economic benefits associated with environmental conservation activities
|Item||FY 2016||FY 2017|
|Revenue||Revenues from sale of recycled products||189||255|
|Expense reduction||Energy expense savings from energy conservation (electricity, fuel oil, etc.)||61||72|
|Disposal cost savings from reduced material usage or recycling||1||0|
|Other expense savings from environmental improvements||0||0|
Environmental Conservation Benefit (physical quantities)
|Item||Unit||FY 2016||FY 2017|
|Fuel oil consumption||kiloliter||2,213||2,364|
|Amount of waste||t||104||692|
|Amount of material recycled||t||4,135||4,957|
Notes: For domestic electricity consumption, the following CO2 emission factors are used: 0.000496t-CO2/kWh (Tokyo Electric Power Co., Inc.) and 0.000573t-CO2/kWh (Tohoku Electric Power Co., Inc.), 2004. For overseas electricity consumption, each country’s CO2 emission factor is determined using in the Greenhouse Gas Protocol Initiative guidelines.
Energy-Saving Impacts of Products
The reductions in electricity consumption and fuel consumption by major energy-saving products of Shindengen Group developed and produced in FY2016 are shown in the table below, as well as the equivalent reduction of CO2 emissions.
|Item||Reduction of electricity consumption||Reduction of CO2 emissions|
|IC series||75 million kWh||36 thousand t-CO2|
Notes: Reduction of electricity consumption = (annual power consumption of old series – that of new series) x annual sales volume.
|Item||Reduction of fuel (gasoline) consumption||Reduction of CO2 emissions|
|DC-DC converter for hybrid vehicles||52,265 kℓ||122 thousand t-CO2|
Notes: Reduction of fuel consumption = (annual consumption of gasoline vehicle – that of hybrid vehicle) x production volume.