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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.
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:
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)
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.