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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 2013

Results of FY 2013 Aggregation

NEC spent a total of approximately 6.7 billion yen on environmental conservation in FY 2012 (approximately 80 million yen in investments and approximately 6.6 billion yen in costs). For the physical reduction effects of environmental conservation activities, FY 2012 saw a decrease in emissions of approximately 120,000 tons when converted to CO₂.

ItemInvestment cost (Million Yen)Cost (Million Yen)Economic benefit (Million Yen)
Cost in business areas Global warming prevention 729 64 36
Effective utilization of resources 0 15 17
Resource recycling Resource recycling activities
(appropriate curtailment and reduction of volume of waste materials)
Cost of waste treatment
(appropriate treatment of waste materials)		 0 8,182 103
Risk minimization Prevention of pollution, law compliance management, chemical substance management - 34 -
Sub-total 729 8,295 156
Upstream and downstream costs Design of environmentally-friendly products 1 35 -
Collection, recycling and reuse of used products - 225 85
Sub-total 1 260 85
Cost of management activities Management activities Personnel expenses related to environmental activities, human resource development, environmental training of employees - 389 -
ISO maintenance, environmental audits 22 8 -
Sub-total 22 397 -
R&D costs R&D (R&D expenses to reduce the environmental impacts of products and production) - 236 -
Cost of social contribution activities Social activities Environmental improvement measures, societal contributions 0 40 -
Information disclosure 0 17 -
Sub-total 0 57 -
Cost of environmental damages Other 0 0 -
Total 752 9,009 482
ItemEffects on materials
Cost in business areas Global warming prevention 130,000 t-CO2 reduction
Effective utilization of resources 0.3 ton reduction: chemical substance use
5 ton reduction: paper use reduction
290,000 ton reduction: water use reduction
527 ton increase: packing material reduction
Resource recycling Resource recycling activities
(appropriate curtailment and reduction of volume of waste materials)
Cost of waste treatment
(appropriate treatment of waste materials)		 1,000 ton increase: waste material reduction
Risk minimization Prevention of pollution, law compliance management, chemical substance management 22.1 ton reduction: NOX
2.9 t reduction: SOX
0.1 ton reduction: BOD
Sub-total -
Upstream and downstream costs Design of environmentally-friendly products -
Collection, recycling and reuse of used products -
Sub-total -
Cost of management activities Management activities Personnel expenses related to environmental activities, human resource development, environmental training of employees -
ISO maintenance, environmental audits -
Sub-total -
R&D costs R&D (R&D expenses to reduce the environmental impacts of products and production) -
Cost of social contribution activities Social activities Environmental improvement measures, societal contributions -
Information disclosure -
Sub-total -
Cost of environmental damages Other -
Total -

Scope of environmental accounting

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

Accounting period:
April 2012 to March 2013

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.