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Environmental Accounting

NEC has been performing environmental accounting since 1998. Environmental accounting is regarded as an effective means for quantitatively evaluating the costs and benefits of the company's environmental activities. Using this system, we quantify the environmental activities of the NEC Group and analyze the costs and benefits of each measure performed. We then use the data as a reference to further improve the efficiency of our environmental management. Our environmental accounting in FY 2006 and after has been performed in accordance with "Environmental Accounting Guidelines, FY 2006" by the Ministry of the Environment.

FY 2011

Results of FY 2011 Aggregation

NEC spent a total of approximately 7.1 billion yen on environmental conservation in FY 2011 (approximately 0.3 billion yen in investments and approximately 6.8 billion yen in costs). For the physical reduction effects of environmental conservation activities, FY 2011 saw a decrease in emissions of approximately 420,000 tons when converted to CO₂.
In FY 2011, NEC Electronics and its subsidiaries became a nonconsolidated group and both costs and economic effects changed greatly.
In FY 2011, NEC's environmental activities had an economic effect totaling approximately 900 million yen.

Item Environ- mental Investments (Million Yen) Environ- mental Costs (Million Yen) Economic Benefits (Million Yen)
Business Area Costs Prevention of global warming 213 30 62
Effective utilization of resources 28 10 8
Resource recycling activities Resource recycling activities (appropriate reductions in volume and weight of waste) Costs of waste disposal (appropriate disposal of waste materials) 31 603 19
Risk management Pollution prevention, legal compliance, management of chemical substances 39 23 0
Subtotal 311 666 89
Up- stream and Down- stream Costs Design of environmentally sound products, green procurement 12 89 -
Collection, recycling, and reuse of used products 2 437 2
Subtotal 14 526 2
Costs of Manage- ment Activities Management activities Personnel costs related to environmental activities, maintenance of ISO certification, environmental audits, human resource development, and environmental training of employees 2 519 -
R&D Costs Research and development (R&D costs for reducing the environmental impact of corporate activities, including products and manufacturing) - 4,970 -
Social Activities Costs Social activities Environmental improvement measures, contributions to society, and information disclosure 0 140 -
Costs of Environ- mental Damage Other 0 0 -
Total 327 6,821 91
Item Physical Reduction Benefits
Business Area Costs Prevention of global warming -420,000 tons (CO₂ conversion)
Effective utilization of resources -11,000 tons: Chemical substances -1,585 tons: Paper -9.25 million tons: Water -800 tons: Packaging materials
Resource recycling activities Resource recycling activities (appropriate reductions in volume and weight of waste) Costs of waste disposal (appropriate disposal of waste materials) -19,000 tons: Waste
Risk management Pollution prevention, legal compliance, management of chemical substances -73 tons: NOx -19 tons: SOx +2 tons: BOD
Subtotal -
Up- stream and Down- stream Costs Design of environmentally sound products, green procurement -30,000 tons (CO₂ conversion)
Collection, recycling, and reuse of used products -
Subtotal   -
Costs of Manage- ment Activities Management activities Personnel costs related to environmental activities, maintenance of ISO certification, environmental audits, human resource development, and environmental training of employees -
R&D Costs Research and development (R&D costs for reducing the environmental impact of corporate activities, including products and manufacturing) -
Social Activities Costs Social activities Environmental improvement measures, contributions to society, and information disclosure -
Costs of Environ- mental Damage Other -
Total -

* Scope of environmental accounting

Scope of environmental accounting:
NEC Japan (headquarters, 5 plants, and 2 laboratories), 27 manufacturing subsidiaries

Accounting period:
April 2010 to March 2011 (January 2010 to December 2010 for some of the overseas manufacturing subsidiaries)

Explanation of economic benefits

  • The economic benefits in the company's business areas are the total of the benefits associated with reductions in energy, materials, and waste achieved through environmental activities.
  • For collection, recycling, and reuse of used products, the economic benefits were derived from the reuse of parts collected from used products, as repair or spare parts.

Explanation of physical reduction benefits

The reduction benefit shown in "design of environmentally sound products" is a reduction of CO₂ emissions achieved in the phase of use by customers, within the entire business life cycle.