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Environmetal Accounting

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

Target period:
FY2021: April 1, 2021to March 31, 2022

FY2022: April 1, 2022 to March 31, 2023

Environmental Conservation Cost

Millions of yen

Category Key Activity and the Outcome Investment Cost
FY
2021		 FY
2022		 Change FY
2021		 FY
2022		 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

13.0

 109.6 96.6 5.6 7.0 1.4
B) Global environmental conservation cost 44.2

222.7

 178.5 32.7 33.6 0.9
C) Resource circulation cost 0.0 1.6 1.6 23.3 30.9 7.6
Total of above 57.3 333.9 276.7 61.6 71.5 9.9
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. 1.4 10.8 9.4 241.9 251.4 9.5
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 0.0 365.9 2307.4 1941.5
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 58.7 344.7 286.1 681.3 2642.3 1960.9

Economic Benefit Associated with Environmental Conservation Activities

Millions of yen

Details of Benefit FY2021 FY2022 Change
Disposal cost saving through lower resource input or recycling 19.2 17.7 -1.4
Energy expense saving through energy conservation -43.5 -240.9 -197.5
Cost saving from reduced resource use (Water) 0.1 -1.7 -1.8
Total -24.2 -224.9 -200.7
  • 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.