The HCM Group conducts environmental accounting aiming to continuously improve environmental activities by accurately ascertaining environmental conservation cost and environmental investment.
Our group performs environmental accounting in accordance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005 edition.
Environmental conservation cost is calculated by totaling the cost of managing environmental facilities, research and development costs, and investment for environmental activities. Environmental conservation effect is comprised of economic outcomes evaluated in terms of both monetary value and quantitative outcomes evaluated based on the amount of reduction in environmental impact. The latter is divided into two stages for calculation: manufacture of the product and use of the product.
Regarding quantitative outcomes in the product usage stage, the quantity of environmentally sound products which will be recycled on site is estimated as an indicator of the contribution towards the materialization of a sustainable society.
Bradken has been included in the results since FY 2018.
The FY 2018 environmental accounts of major domestic and international production locations subject to consolidation have shown that environmental protection costs were three times higher than the previous financial year.
According to the breakdown, the ratio of business location area costs such as expenditure to introduce VOC recovery equipment increased substantially.
Furthermore, environmental investment pertaining to the atmosphere, soil, and energy saving, etc. was also higher than the previous fiscal year.
While the financial outcomes for environmental protection were lower than the previous financial year, quantitative outcomes were more positive, with energy reductions doubling and the volume of water used massively decreasing.