Hitachi Construction Machinery

Global

Environmental Accounting

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.

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.

Hitachi Construction Machinery Group Environmental Accounting (Consolidation)

1. Environmental preservation cost (units: million yen)
Classification Fiscal Year 2014 Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
1. Business area cost 2,782 2,380 1,535 846 2,575
Breakdown 1) Pollution prevention 1,063 801 650 167 1,903
2) Global environmental conservation
(Including climate change related areas)
 416
(225)
332
(332)
551

(547)

407

(407)

322 (319)
3) Recycling 1,303 1,247 334 272 349
2. Upstream and downstream costs 53 54 61 78 74
3. Administration cost 483 541 450 337 533
4. Research and development costs (Climate change related areas) 5,515 5,107 5,008 6,182 6,785
5. Social activity cost 321 232 504 219 14
6. Environmental remediation cost 0 0 0 0 0
Total 8,838 8,314 7,558 7,663 9,981
Environmental investment
(Including climate change related areas)
89
(0)
4,614
(718)
1,192
(742)
2,247
(2,097)
2,649
(648)

Total Range: Main Domestic and Overseas Production Bases for Consolidation

2. Environmental conservation effects
Classification Fiscal Year 2014 Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
Economic effects Net income effect 1,073 990 740 1,333 1,452
Cost reduction effects 12 621 157 552 124
Total 1,085 1,611 897 1,885 1,577
Quantitative effects Production stage Energy saving amount (kl/year) 1,530 4,459 4,467 793 1,696
NOx reduction (t/year) 0.2 0 0 0 0
Water use reduction (t/year) 92,925 10,789 100,480 91,350 149,567
Reduction of final waste disposal (t/year) 436 0 1.3 407 845
In-use stage Asphalt, etc. recycled
(10,000 t/year)
Wood waste recycled
(10,000 t/year)
Soil improved (10,000 t/year)
Grease reduction (t/year) 9.8 7.6 7.0 3.5 3.2
Lead solder reduction (t/year) 6.7 3.8 3.3 0.1 0.1

Total Range: Main Domestic and Overseas Production Bases for Consolidation

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