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For the Environment Environmental Accounting

We calculate the environmental costs (investments and expenditures) and benefits (material quantities), as well as economic impacts (in monetary units) of environmental measures on a consolidated basis for four parent plants and 29 Group companies in Japan (manufacturing companies).

K KANEKA
J JAPAN
W WORLDWIDE

Results of Environmental Accounting for Fiscal 2016

K J 

Environmental costs (for investments) were 1.05 billion yen, similar to the previous fiscal year.
Environmental costs (for expenditures) declined by about 120 million yen and 180 million yen for pollution prevention and resource recycling, respectively, but increased by about 50 million yen for research and development.
Regarding the economic impacts of environmental measures, the reduction effect of waste disposal costs due to recycling, etc. increased by about 330 million yen, but the cost reduction effect due to better resource efficiency (output per unit of input) declined by about 640 million yen, and the cost reduction effect due to energy conservation and other savings decreased by about 510 million yen, compared to the previous fiscal year.

Note: These calculations are based on the 2005 edition of the Environmental Accounting Guidelines by Japan's Ministry of the Environment and other reference materials, with partial modifications.

■ Environmental Costs

Millions of yen

Cost Classifications Main Efforts Fiscal 2016
Investments Expenditure
Business Area   1,046 4,884
1. Pollution Prevention Air and water pollution prevention 1,011 3,150
2. Environmental Conservation Addressing climate change and energy saving - -
3. Resource Recycling Waste processing, recycling, and reduction 35 1,734
Upstream and Downstream Product recycling, collection, and processing 0 8
Management Activities Environmental education for employees and environmental impact monitoring and measurement 0 457
Research and Development Research and development of products contributing to environmental conservation 0 6,728
Social Activities Greening, beautification, and disclosure of environmental information 0 72
Environmental Damage Payment of sulfur oxide emission charges 0 8
Total 1,046 12,157

Figures do not include research and development investment and global environment conservation costs.

■ Quantitative Impact of Environmental Conservation Efforts

Category Initiatives Items Units Changes between Previous Year and Fiscal 2016
Pollution Prevention Reduce atmospheric and water discharges of hazardous substances SOx emissions Tons 20.4
NOx emissions Tons 42.1
Chemical oxygen demand Tons 6.3
PRTR Law-designated chemical emissions Tons 12.0
Environment Lower greenhouse gas emissions CO2 emissions Thousands of tons CO2 97.0
Use less energy Crude oil equivalents Thousands of kiloliters 56.0
Resource Recycling Reduce final landfill Final landfill Tons 195
Increase external recycling Amounts recycled Tons - 4,917

■ Economic Impacts of Environmental Measures

Millions of yen

Measures Fiscal 2016
Revenue from Recycling 130
Cost Reductions by Better Resource Efficiency (Output per Unit of Input) - 297
Waste Disposal Cost Reductions by Recycling 489
Cost Reductions by Energy Conservation 123
Total 445

Environmental Investments

K J 

We continue to invest in the environment. Investments related to the environment in fiscal 2016 totaled about 960 million yen, of which 32.1% was for air quality, 30.1% for the work environment, and 26.2% for water quality.
Cumulative environmental investments come to about 13.8 billion yen during the 17 years since fiscal 2000, with the most being for air quality (42%), followed by water quality (22%), and the work environment (17%).
We will continue to invest proactively to maintain and improve the environment.

■ Environmental Investments in Fiscal 2016


■ Cumulative Environmental Investments

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