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Environmental Accounting

Environmental accounting is a methodology for quantifying the costs and effects of environmental conservation activities. Through the introduction of environmental accounting, we aim to improve the effectiveness of our conservation efforts and implement sustainable environmental policies with quantifiable results over a long term. We are also working to heighten awareness of our environmental conservation activities through the publication of related information and communications to clarify our stance on the environment.

Features

Nikon Group's environmental accounting features the classification of environmental costs and effects in line with our environmental preservation activities.

Basic Policy

The categories of environmental costs (investments and expenses) are based on the Nikon Group's environmental targets and related measures, as well as the standards set forth in the Environmental Accounting Guidelines (2005 version) of the Japanese Ministry of the Environment.

Effects of Environmental Conservation Activities

The actual results of various measures towards environmental targets are shown as "Result for the year ended March, 2009" in the table of the Environmental Action Plan of Nikon CSR Report 2009(page 33) about the effect of environmental conservation activities. The following table shows the economic effects of environmental conservation measures.

Cost of Environmental Protection
(Nikon, Tochigi Nikon, Tochigi Nikon Precision, Mito Nikon Precision, Sendai Nikon, Sendai Nikon Precision, Zao Nikon, Kurobane Nikon, Hikari Glass, TNI Industry Nagai Factory, etc.

(Unit: million yen)
Theme Main activities Invest-
ment
Ex-
penses
Total
Product environ-
ment
Product development, energy efficiency, and reduction in use of hazardous chemical substances Energy-saving design, compliance with REACH Regulations, etc. - 162 162
Green procurement Nikon Green Procurement Standards, etc. - 16 16
Packaging & distribution Eco-friendly driving lessons, use of digital tachometer, etc. - 2 2
Product environment subtotal - 181 181
Work-
place environ
ment
Energy saving Upgrading air conditioning systems, installation of inverter-equipped equipment, etc. 346 137 483
Waste reduction Maintaining of zero-emission systems, mass-volume waste reduction, etc. 0 66 66
Reduction in use of hazardous chemical sub-stances Disposal & management of unnecessary chemical substances, etc - 7 7
Green purchasing Promoting purchase of eco-friendly materials, etc. - 0 0
Improvements to workplace Improvements in workplace environmental performance, etc. - 34 34
Workplace environment subtotal 346 243 589
Legal compliance Management of equipment for processing gaseous emissions and effluents, maintenance of noise/vibration-emitting facilities,waste management, recycling fee management, control of dangerous substances, etc. 832 819 1,651
Administration ISO 14001 (administering Environmental Management System (EMS), workplace education), social contribution activities, planting trees, etc. - 561 561
Grand total 1,178 1,804 2,982

Applicable Period: April 1, 2008 to March 31, 2009

Note: Costs which could not be clarified are in principle not included in these accounts. Depreciation and amortization have not been factored into these accounts.
Where a facility has been utilized for several purposes and breakdown is considered complex, the entire cost has been included in the investment cost.
All costs have been rounded up or down to the nearest whole number, so it is possible that totals are not identical to the sum of the constituents as listed.
Only substantial effects deducible based on sound reasons are included as economical effects of environmental conservation measures.

Cost of environmental protection classified according to guidelines of the Japanese Ministry of the Environment
(Nikon, Tochigi Nikon, Tochigi Nikon Precision, Mito Nikon Precision, Sendai Nikon, Sendai Nikon Precision, Zao Nikon, Kurobane Nikon, Hikari Glass, TNI Industry Nagai Factory, etc.)

(Unit: million yen)
Theme Main activities Invest-
ment
Ex-
penses
Total Eco-
nomic effect
Costs within business establishment area Pollution prevention costs Management of equipment for processing gaseous emissions and effluents, maintenance of noise / vibration - emitting facilities, etc. 492 414 906 -
Global environment protection costs Energy conservation, reduction in use of hazardous chemical substances, control of dangerous substances, etc. 686 239 924 153
Resource recycling costs Waste reduction, waste management, recycling fee management, maintenance of zero-emission systems, etc. 0 389 390 75
Subtotal 1,178 1,042 2,220 228
Upstream/downstream costs Application of Green Procurement Standards, hazardous chemical substance surveys, use of digital tachometer, recycling fee management, etc. - 19 19 -
Administration costs ISO 14001 (administering Environmental Management System (EMS), workplace education), etc. - 519 519 -
R&D costs Creating energy-efficient designs, REACH Regulation compliance, etc. - 169 169 -
Social activity costs Social contribution activities, sponsorship activities, public relations, etc. - 52 52 -
Environmental damage costs Soil treatment costs, pollution load levy, etc. - 2 2 -
Grand total 1,178 1,804 2,982 228

Applicable Period: April 1, 2008 to March 31, 2009

Note: Costs which could not be clarified are in principle not included in these accounts.
Depreciation and amortization have not been factored into these accounts.
Where a facility has been utilized for several purposes and breakdown is considered complex, the entire cost has been included in the investment cost.
All costs have been rounded up or down to the nearest whole number, so it is possible that totals are not identical to the sum of the constituents as listed.
Only substantial effects deducible based on sound reasons are included as economical effects of environmental conservation measures.




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