Harmony with Nature
Environmental Accounting
Alps Electric introduced its environmental accounting (*A) system in fiscal 2000 in accordance with the Ministry of the Environment guidelines in order to monitor its environmental costs and associated economic benefits. Fiscal 2006 saw the successful progress and completion of a phase of soil and groundwater bioremediation treatment, resulting in both environmental investments and expenditures falling below previous year levels. An increase in economic benefits in fiscal 2006 over fiscal 2005 can be attributed to a rise in profits on the sale of materials due to a sharp hike in materials prices.
(*A) : Environmental Accounting:Environmental accounting is a system used to clarify the costs of those activities that are conducted by a company in an effort to protect the environment and contribute to the creation of a sustainable society.
| Category | Main Objective | Investment(*2) | Costs (*3) | ||
|---|---|---|---|---|---|
| '05 | '06 | '05 | '06 | ||
| Operating costs | Pollution prevention Waste recycle |
243.6 | 144.4 | 518.0 | 498.1 |
| Upstream and downstream production costs |
Green procurement Database for Chemical Substance Management |
2.5 | 13.5 | 158.1 | 139.7 |
| Administration costs | ISO 14001 certification maintenance |
6.5 | 0.0 | 141.9 | 161.8 |
| R&D costs | － | 0.0 | 1.6 | 12.3 | 17.6 |
| Social contribution costs | Community cleanup activities | 13.6 | 2.5 | 25.3 | 28.0 |
Environmental restoration costs |
Remediation of soil and groundwater |
126.0 | 0.0 | 517.5 | 255.6 |
| Other costs | － | 0.0 | 0.0 | 0.0 | 0.0 |
| Total | 392.2 | 162.0 | 1,373.1 | 1,100.8 | |
(*1) Environmental costs consist of all investments and expenses incurred solely for environmental preservation purposes, and do not include partially-related expenses.
(*2) Investment comprises capital investment and leasing expenses.
(*3) Costs include administrative, maintenance, depreciation, and lease expenses for the current period.
| Category | Value | |
|---|---|---|
| '05 | '06 | |
| Profit on sales of materials | 1,589.3 | 1,871.3 |
| Cost reductions due to energy saving | 48.5 | 84.6 |
| Total | 1,637.8 | 1,955.9 |
*Economic benefits include the sale of wastes that have been separated, recycled and recovered, as well as electric, fuel and other cost savings due to energy conservation. Economic benefits do not include deemed benefits.
