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Environmetal Accounting

Scope of calculations:
Azbil Corporation’s Fujisawa Technology Center, Shonan factory, Isehara factory, Hadno Office, and Azbil Taishin Co., Ltd.

Target period:
FY2016: April 1, 2016 to March 31, 2017
FY2017: April 1, 2017 to March 31, 2018

Environmental Conservation Cost

Millions of yen

Category Key Activity and the Outcome Investment Cost
FY
2016
FY
2017
Change FY
2016
FY
2017
Change
1. Environmental conservation cost to control environmental impacts which result from key business operations within the business area (Business area cost) A) Pollution prevention cost 2.0 6.9 4.9 8.6 9.1 0.5
B) Global environmental conservation cost 49.7 54.1 4.4 37.9 40.7 2.8
C) Resource circulation cost 0.0 0.0 0.0 39.3 22.7 -16.6
Total of above 51.7 61.1 9.4 85.8 72.5 -13.3
2. Environmental conservation cost to control environmental impacts which result from key business operations upstream or downstream (Upstream/downstream cost) - 0.0 0.0 0.0 12.0 12.0 0.0
3. Environmental conservation cost stemming from administrative activities (Administration cost) Maintaining ISO 14001 certification, environmental information disclosure, environmental impact monitoring, environmental advertising, environmental education, greening and beautification of offices etc. 5.6 1.8 -3.8 215.8 206.0 -9.8
4. Environmental conservation cost stemming from R&D activities (R&D cost) R&D in such fields as the environment and alternative energy 0.0 0.0 0.0 606.1 652.7 46.6
5.Environmental conservation cost stemming from social activities (Social activity cost) Cleaning rivers, waterfront and other areas 0.0 0.0 0.0 2.1 0.1 -2.0
6. Cost incurred for dealing with environmental degradation (Environmental remediation cost) - 0.0 0.0 0.0 0.0 0.0 0.0
  Total 57.3 62.9 5.6 1298.0 943.4 -354.6

Economic Benefit Associated with Environmental Conservation Activities

Millions of yen

Details of Benefit FY2016 FY2017 Change
Disposal cost saving through lower resource input or recycling 7.3 7.8 0.5
Energy expense saving through energy conservation 53.7 -25.9 -79.6
Cost saving from reduced resource use (Water) 2.1 -4.5 -6.6
Total 63.1 -22.6 -85.7
  • Environmental conservation cost is presented in a format equivalent to that given in the Ministry of the Environment’s Environmental Accounting Guidelines 2005.
  • Since the amounts represent the cost and benefit of activities to reduce the environmental impact, primarily production-related activities, the income and expenses from the environmental business and environment-conscious products and services are not included.
  • Capital investment is fully booked in the fiscal year they were made, but are not included in the depreciation expenses calculation.
  • The reduction in energy expenses is calculated by subtracting the current year’s energy expenses from the previous year’s. Therefore, the figure can be negative if the impact of increased energy costs outweighs the effects of energy conservation. The calculation includes negative figures because of the transfer of our production facilities.