Environmental Accounting

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JRC began aggregate calculation of environmental accounting in 2001 and is working to achieve efficiency in its environmental activities in terms of both cost and effect.

1. Accounting conditions

  • Period covered: April 1, 2006- March 31, 2007
  • Range of accounting: Japan Radio Co., Ltd. Mitaka Plant and Saitama Plant
  • Basic concepts: Guidelines for Environmental Accounting, 2005 edition (Ministry of the Environment)
  • Only costs of the measures taken for the purpose of environmental conservation should be included in the accounting, and unexpectedly, those contributing to environmental conservation are excluded.
  • Depreciation costs of environmental facilities are included.
  • Only substantial impacts (reduction impacts, income from selling valuable resources) should be included, but estimated impacts should not be included.
  • The effect shown in terms of the consumption of electric power, city gas, drinking water supply and water from wells should cover not only the facility investment but all environmental activities.

2. Environmental conservation costs

Unit: Million yen
Classification FY 2006
Classification Efforts Investment Costs
1. Costs in business areas · Cost of waste disposal
· Maintenance and management costs of facilities to reduce environmental loads
2.8 168.7
2. Up- and down-stream costs · Recycling cost 0 1.7
3. Management activity cost · Personnel cost of environmental control
· Maintenance cost of environmental management systems
0 121.1
4. Research and development cost · Research and development cost for environmental conscious products 0 275.0
5. Costs of social activities · Environmental maintenance cost, including vegetation
· The cost of publicity
0 14.4
6. Cost of environmental damage · Cost of restoring natural environments 0 0
Total 2.8 580.9

Image:Costs and Investment


3. Effects

Economic effects Unit: Million yen

2006
Contents of effect Substantial effect Economic effect
1. Reduction of power (1,000 kwh) -50.8 -7.3
2. Reduction of city gas (1,000 m³) 71.2 -1.9
3. Reduction of consumption of tap water and well water (1,000 m³) 0.3 -0.6
4. Resources recycling and reduction of wastes
(1) Industrial waste subject to special control
(1,000 kg)
(1,000 L)
(2) Industrial waste
(1,000 kg)
(1,000 L)
(3) General waste from business activities
(1,000 kg)


14.4
0.5

9.1
-0.6

17.3
1.7
5. Valuable resources (1,000kg) 526.7 21.4

* All values except the actual values of valuable resource show the difference from actual values of the previous fiscal year.
Image:Effect in monetary terms

4. Report of results

The personnel cost of environmental control for management activity cost were reduced by half. However, the total cost increased as research and development costs into environmental requirement increased.

Concerning the "substantial effect" of environmental conservation effects, a small increment was observed on the electric power, but a reduction in city gas. Concerning waste, we significantly reduced the volume of waste from solvents by reusing them. The quantity of wasted fluorescent tubes increased, while a significant reduction emerged in the volume of wasted dry batteries, especially wasted construction materials and batteries. The volume of valuable resources (scraps of aluminum, copper, steel and gold-plated articles) sorted out of wastes increased due to recycling activity. Consequently, the "economic effect" of waste turned positive and the economic effect significantly improved as a whole.


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