Environmental Accounting

We introduced environmental accounting in fiscal year 1999 for the efficient and continuous promotion of environmental conservation. Since then, we have obtained a quantitative understanding of the costs, economic effects, and environmental outcomes of our environmental conservation activities.

Scope of calculations:
Azbil Corporation production sites [Fujisawa Technology Center, Shonan Factory, and Hadano Office], Azbil Taishin Co., Ltd.

Target period:
FY2023: April 1, 2023 to March 31, 2024
FY2024: April 1, 2024 to March 31, 2025

Environmental Conservation Cost

Millions of yen

Category Key Activity and the Outcome Investment Cost
FY
2023		 FY
2024		 Change FY
2023		 FY
2024		 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 0.0 0.0 0.0 5.4 7.1 1.7
B) Global environmental conservation cost 52.3 66.4 14.1 34.5 35.9 1.4
C) Resource circulation cost 55.4 1.5 -53.9 22.5 27.2 4.7
Total of above 107.7 67.9 -39.8 62.4 70.2 7.8
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. 12.3 25.9 13.5 278.7 358.7 80.0
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 2605.5 2614.3 8.8
5.Environmental conservation cost stemming from social activities (Social activity cost) Cleaning rivers, waterfront and other areas 0.0 0.0 0.0 0.0 0.0 0.0
6. Cost incurred for dealing with environmental degradation (Environmental remediation cost) - 0.0 0.0 0.0 0.0 0.0 0.0
  Total 120.1 93.8 -26.3 2958.6 3055.2 96.6

Economic Benefit Associated with Environmental Conservation Activities

Millions of yen

Details of Benefit FY2023 FY2024 Change
Disposal cost saving through lower resource input or recycling 16.2 20.3 4.1
Energy expense saving through energy conservation 117.6 -85.7 -203.3
Cost saving from reduced resource use (Water) -3.3 -2.7 0.6
Total 130.5 -68.1 -198.6
  • 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.

Environmental debt

As part of our future environmental liabilities (environmental items among asset retirement obligations), we estimate the cost of asbestos waste disposal to be 175.1 million yen, an amount that can be reasonably estimated as of March 2025.

Scope of calculation: Azbil Corporation, Azbil Kimmon Co., Ltd.