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 2019 environmental accounts of major domestic and international production locations subject to consolidation have shown that environmental preservation costs were 20% lower than the previous year.
According to the breakdown, the ratio of business area costs decreased substantially.
Environmental investment pertaining to the atmosphere, soil, and energy saving, etc. was almost at the same level to the previous 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 decreasing.

Hitachi Construction Machinery Group Environmental Accounting (Consolidation)

1. Environmental preservation cost (units: million yen)
Classification Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018 Fiscal Year 2019
1. Business area cost 2380 1535 846 2575 691
Breakdown 1) Pollution prevention 801 650 167 1903 271
2) Global environmental conservation
(Including climate change related areas)
332
(332)
551
(547)
407
(407)
322
(319)
38
(15)
3) Recycling 1247 334 272 349 382
2. Upstream and downstream costs 54 61 78 74 92
3. Administration cost 541 450 337 533 464
4. Research and development costs
(Climate change related areas (including clean technology such as that used in environmentally friendly products))
5107 5008 6182 6785 6670
5. Social activity cost * 232 504 219 201 16
6. Environmental remediation cost 0 0 0 0 6
Total 8314 7558 7663 10168 7940
Environmental investment
(of which climate change related areas)
4614
(718)
1192
(742)
2247
(2097)
2649
(648)
2596
(273)

Total Range: Main Domestic and Overseas Production Bases for Consolidation

※Total range has been changed from FY 2019

2. Environmental conservation effects
Classification Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018 Fiscal Year 2019
Economic effects Net income effect 990 740 1333 1452 960
Cost reduction effects 621 157 552 124 148
Total 1611 897 1885 1577 1108
Quantitative effects Production stage Energy saving amount
(kl/year)
4459 4467 793 1696 3236
NOx reduction
(t/year)
0 0 0 0 0
Water use reduction
(t/year)
10789 100480 91350 149567 133842
Reduction of final waste disposal
(t/year)
0 1.3 407 845 0
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)
7.6 7.0 3.5 3.2 3.6
Lead solder reduction (t/year) 3.8 3.3 0.1 0.1 3.5

Total Range: Main Domestic and Overseas Production Bases for Consolidation

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