Environmental Management Environmental Accounting To grasp the efforts for environmental conservation activities from a cost-effect perspective, the Oki group introduced environmental accounting in 1999, pursuing its activities in an efficient way by putting the effect of its investments to maximum use. j Fiscal 2004 Environmental Accounting Records In fiscal 2004, Oki Precision (Thailand) Co., Ltd., a group company in Thailand related to manufacturing, was newly added to the scope of companies for environmental accounting. We completed the introduction of the system to Oki Electric and 25 group companies (32 sites) in Japan and overseas, and are now covering almost 100% of the manufacturing and sales divisions in terms of turnover. The characteristics of environmental accounting in fiscal 2004 were as shown at the right. The numbers in parentheses are for fiscal 2003.For concrete efforts, please see the pages shown in the table and page 48.On page 48, you can find separate data for Oki Electric and group companies in Japan and overseas. dThe amount of investments fell by 28% to 300 million yen (420 million yen).This is, among other reasons, because the installation of equipment supporting lead-free solder was completed. dThe costs stayed about the same at 3.15 billion yen (2.97 billion yen). dThe economic benefit amounted to -400 million yen (40 million yen). The expense saving benefit increased by 80 million yen, since the quantities from the sale of valuable waste, etc. grew. However, with the increased production quantities, the effect from energy and resource conservation dropped sharply, so that the economic effect shrunk. dAs for the environmental conservation effect, the CO2 emissions fell in terms of basic units against sales, but the absolute quantity increased by 28% due to the increased production quantities. The quantities of final waste processing increased only very little thanks to the continued zero emission efforts. 'Environmental Conservation Costs dInvestments/Costs (Unit: million yen) Category Key Activities ·Pollution prevention cost Business ·Global environmental conservation cost area cost ·Resource recycling cost Investments, and maintenance and management costs for facilities to conserve energy 187 (137) 343 (327) 26, 27 Investments in facilities for internal processing or organic waste liquids, costs for waste recycling 5 264 (28) (593) 28p 30 (269) 622 2,035 (2,040) 32 (20) 254 (118) 17p 22 Sub-total Costs 1,070 (1,120) See page Investments, and maintenance and management costs for facilities to prevent pollution Investment (104) 72 31, 32, 40 – Upstream/downstream cost Costs for green procurement (chemical substance surveys), costs for remodeling the aggregation system for chemical substances contained in products) Administration cost Cost for acquiring certification, and for maintaining and managing the environmental management system 0 (0) 680 (693) 09p 11, 35, 36, 41, 44, 45 R&D cost Investments into equipment to shift to lead-free soldering, costs for research and development on lead-free soldering 1 (126) 171 (113) 19, 20, 33, 39, 40, 46 Social activity cost Costs for the greening of production plants, costs for activities contributing to the community 0 (0) 2 (1) 35, 43p 46 Other cost Cost for reserves to respond to environmental damages 0 (0) 9 (9) 36 297 (415) 3,151 (2,974) Total – 'Environmental Conservation Benefit dEconomic Benefit dEnvironmental Conservation Effect (Unit: million yen) Category Key Activities See page Effect Effect from energy and Reduced use of electricity, oils, gases, packaging materials, etc. s600 (s130) Cost resource conservation in business activities reduction benefit Treatment cost Reduction of waste through recycling, etc. in business activities s42 (5) reduction benefit Sale of valuable waste generated in business activities Sale of valuables from end-of-life products Expense saving benefit Total 223 (151) 20 (12) S399 (38) 26, 27, 29, 30 Environmental impact index Impact CO2 emissions (Thousand tons-CO2) 28p 30 Waste Final waste emissions processing (tons) 28p 30 Difference compared See to previous fiscal year page 389 (303) 86up 26, 27 81 (72) 9up 28p 30 21, 22, 34 – j Transition of Environmental Accounting Six years have passed since we started environmental accounting. The graphs below show the investments, costs and economic effects of our environmental conservation activities. 45,000 600 40,000 35,000 500 300 30,000 415 400 25,000 332 297 285 20,000 15,000 10,000 5,000 0 200 100 98 0 1999 2000 2001 2002 2003 2004 dCosts 1,012 33 33 30 694 600 400 25 477 20 17 10 200 1.3 0 1999 -200 2000 33 33 33 2001 33 2002 38 2003 0 2004 Fiscal year -12.7 25 25 -400 17 17 -399 -10 3,190 2,831 2,720 2,974 3,151 200 2,000 133 1,500 106 1,000 88 96 2002 2003 98 100 500 2000 [Accounting period] April 1, 2004 through March 31, 2005 Effect against cost (%) Economic benefit (million yen) 800 3,070 2,500 1999 40 1,000 3,000 0 dEconomic Benefit 1,042 300 273 Fiscal year 1,200 3,500 133 133 2001 106 106 88 88 96 96 Costs per site (million yen) 55,000 50,000 753 700 Costs (million yen) 800 Total investments (million yen) Investments for environmental conservation (million yen) dInvestment 0 2004 Fiscal year 98 98 [Accounting conditions] (1) The calculation standards are based on the “Environmental Accounting Guidelines (2002 Edition)” published by the Ministry of the Environment. (2) A portion of the accounting includes figures relating to affiliated companies located within sites that participated in the environmental impact management. (3) For costs where environmental conservation costs overlap with other costs, only the portion of the costs related to environmental conservation is counted. (4) The depreciation cost of investments is calculated using the fixed installment method for a period of three years. The economic benefit achieved with these investments is calculated for three years, in line with the depreciation period. (5) Personnel costs are calculated by prorating the personnel costs for the total time spent on environmental conservation activities. (6) The cost reduction effect and the environmental conservation effect are, starting from this fiscal year, reduced by the value from the previous year. (7) The expense saving benefit represents the value for this fiscal year. 08 ENVIRONMENTAL REPORT 2005