| Basic
Concept for Environmental Accounting |
| Objectives
of Environmental Accounting |
Environmental
accounting is introduced as
a management control tool for
properly managed environmental
conservation activities; the
primary objective is to take
its advantage for our business
operation.
Ricoh recognizes conditions
for environmental accounting
to be beneficial for its company
operation as follows:
Conditions
for Environmental Accounting
to be Beneficial for Company
Operation
- Items covered by environmental
accounting should conform
to substantial business
judgment in their entirety
and in several (Corporate/Segment)
- Thorough comparisons between
environmental expenses and
economic effects, etc should
be made. (Substantial/Expected/Incidental
Effects)
- It should be descriptive
of ecological business efficiency,
such as investment efficiency
for lower environmental
impact and business management
with less ecological impact.
(EE value, Eco-Ratio, EEI,
Eco-Index)
|
|
|
 Coverage |
Companies
included in the accounting for
FY2000 were Ricoh and its manufacturing,
sales and service affiliates
(Tohoku Ricoh, Hasama Ricoh,
Ricoh Optical Industries, Ricoh
Unitechno, Ricoh Elemex, Ricoh
Microelectronics, Ricoh Keiki,
Parts Component System, Ricoh
Technosystems, Ricoh Logistic
System, Ricoh Electronics Inc,
Ricoh Industrie France, Ricoh
UK Products, Ricoh Asia Industry,
Taiwan Ricoh) Total
16 companies.
We will start applying environmental
accounting to group companies
which acquired ISO14001 in sequence.
|
| Costs |
Collected
environment conservation cost
data covering depreciation allowance
for assets, personnel expenses
and other expenses spent for
the purpose of environmental
conservation (cost items are
in line with Environment Agency's
2000 guidelines).
|
| Effects |
Effective
from FY2000, the "social effect"
concept was introduced in addition
to economic and environmental
conservation effects.
| Ricoh's
View on Social Effect |
| Since
industrial firms
bear costs paid
by the society (costs
that companies do
not usually compensate
for; cost to cleanup
waters polluted
by discharged soil
water or to indemnity
asthmatic patients
for emission of
air-polluting substances,
etc) through environmental
conservation activities,
effects from spending
environmental conservation
cost should include
social effect (e.g.
reduction in customers'
electricity bills
through using energy-saving
products) as well
as profit-seeking
private effect.
Though social effect
was hardly mentioned
in the traditional
environmental accounting.
As Ricoh Group is
trying to reduce
the impact of its
products on environment
in a positive manner,
it recognizes reduction
in electricity and
waste disposal costs
through using their
products and waste
recovery/recycling
as social effects
and incorporated
such effects into
environmental accounting. |
|
| Economic
Effect (in terms of monetary
amounts) |
- To be contrasted
with environmental
conservation cost.
- Not only effects
for the accounting
purpose but also those
calculable by formulated
definition shall be
covered.
|
| a
: Substantial Effect
: |
Effects
including power
or water saving,
profit on sale of
recycled marketable
goods, etc |
| b
: Expected Effect
: |
Expected
economic effects
by specific definition |
| c
: Incidental Effect
: |
Effect
regarded as possible
risk aversion (legal
and repair costs,
etc) |
| s
: Social Effect
: |
Effects
on the society such
as lower electricity
cost by using our
product, reduced
waste disposal cost,
etc. |
|
| Environmental
Conservation Effect (by
quantitative standards) |
- For the following
6 items relating to
environmental conservation,
reduced and total
amounts were calculated
respectively: CO2,
NOx, SOx, BOD, Final
Waste Disposal Amount,
PRTR Substances.
- Reduction in environmental
impact was calculated
(for domestic companies
only).
- Relations between
reduction in environmental
impact and environmental
expenses as well as
total environmental
impact and business
added value.
|
|
|
|
 |
| Corporate
Environmental Accounting of the Ricoh Group
for FY2000 |
|
 |
| Effect
Calculation Method |
| Principal
methods for effect calculation
are shown below. |
 Substantial
Effect
|
| Saving
Effect |
- Amount
reduced in electricity,
gas, fuel, water and waste
disposal costs.
Effect involving investment
is taken into account assuming
that such effect will last
for 3 years.
Changes in production volume
and personnel are considered
for factories and offices
respectively.
|
| Recycling
Effect |
- Value
of waste disposal /recycled
valuable product sold.
Value of recycled products
sold obtained by product
recycling.
|
| Expected
Effect
|
| Effect
on Production Added Value |
- (Output - Raw
material cost) × Environmental
expense / Gross expense
|
| News
Report Effect |
-
page space of the featured
article/page space ×
advertising cost per page
|
| Environmental
Education Effect |
Number
of employees who took internal
environment education courses
× outside course fees
|
| EMS
Establishment Effect |
-
Number of newly established
offices × outsource
consultant fees
|
| R&D
Added Value Effect |
-
(sales - sales
cost) × environmental
R&D cost/total SG&A
|
| Advertisement
Effect |
-
Number of access to the
Group's website on environment
activities × cost
of environmental reporting
|
| Incidental
Effect
|
Target Items :
Valuation of ISO14001 impact
on environment, matters
to be improved relating
to pollution control
Basic Amount :
amount required for litigation,
closedown and restoration
Factors:
generation and influence
factors depending on frequency
and scope of the influence
Amount of Accidental Effect
= Basic amount × generation
factor × influence
factor
|
| Product's
Effect of Reducing Environmental
Impact
|
Total Electricity Consumption
= electricity consumption
per product × products
sold
Effect of electricity cost
reduction= (former total
electricity consumption - current
total electricity consumption)
× unit electricity
cost
Reduction in Waste Disposal
= (weight of products recalled - weight
of waste for final disposal)
× unit cost of outsourced
disposal
|
| Eco-efficiency |
- EE Value
Eco-efficiency value ("EE
value"), which is reduction
in environmental impact
divided by total environmental
cost for the fiscal year
in question, in order to
efficiently pursue environmental
conservation.
- Eco-ratio
The ratio of environmental
impact to profits, called
the "Eco ratio" (gross profit
on sales - corporate added
value - divided by total
environmental impact) is
used to compare total environmental
impact to business added
value.
Define
"EE value"
(in
tons per
100 million
yen)
EE
value
= Reduction
in environmental
impact
/ total
environmental
cost
Define
"Eco ratio"
(in
100 million
yen per
ton)
Eco
ratio
= Gross
profit
on sales
/ total
environmental
impact |
|
|
|
| Combined
Environmental Index |
- Eco-efficiency index (EEI)
The Eco-efficiency index
(EEI), which is the ratio
of total reduction in environmental
impact to total environmental
costs
- Eco-index
The Eco-index, which is
the ratio of total environmental
impact to added value from
businesses
Definition
of Eco-efficiency
index
(EEI)
EEI
= total
reduction
in environmental
impact
(coefficient
conversion)
/ total
environmental
costs
(thousands
of yen)
Definition
of Eco-index
(Ratio
of environmental
impact
to profit)
Eco-index
= gross
profit
on sales
(thousands
of yen)
/Total
environmental
impact
(coefficient
conversion)
|
|
|
|
|
|
|
| FY2000
Segment Environmental Accounting |
|
Segment Environmental
Accounting
In corporate activities, occasions where
Corporate Environmental Accounting (cross-enterprise
environmental accounting) are used for decision-making
are limited in a way; however, Segment Environmental
Accounting processed on various segmental
basis, Segment Environmental Accounting
for effect projection in particular, can
be used on many decision-making occasions.
Results of projected environmental conservation
evaluated by segmental environment accounting
are shown on the following pages.
In any case, they are expected to be contributive
to ecological management in the light of
economic effect and reduction in environmental
impact. |
Estimated Effectiveness
on Environmental Conservation in Energy-Saving
Line
To accommodate large item small scale production,
our Group Company, Ricoh Unitechno has developed
"Cart Line", a method to tow a chain which
combines existing several conveyer lines
by connecting carts; though this method
needs capital expenditure of approx. 1/20
of the old conveyer line, substantial greenhouse
reduction is expected as electric power
consumption is reduced to 1/80.
We also confirmed that this leads to much
better productivity resulting from better
space efficiency and improved functionality
brought by space-saving and process rearrangement.
|
| Cost |
Effect |
| Cost
Item |
Main
Costs |
Amount |
Economic
Effect |
Environmental
Protection Effect |
| Business
Area Cost |
Facility
Investment Setup Cost, etc |
¥9.25
million |
Reduction
in Utility Charges
¥4.04 million
Reduction in Personnel / Maintenance
Costs
¥15.5 million
Increase in Productive Efficiency
¥89.55 million |
Amount
of CO2 reduction
108.7t |
|
| The amounts
of expenses and effects are calculated based
on the equipment's cumulative statutory
depreciation period. |
Estimated Environmental
Conservation Cost Effectiveness by Energy-Saving
Machines
Not only directly by reducing environmental
impact in the offices, corporate environmental
conservation activities also contribute
indirectly to lower environmental impact
through offering eco-friendly products to
customers and markets. Therefore, we considered
calculation of cost effectiveness of copying
machines with newly-developed cost-saving
fixing units which can reduce electricity
consumption significantly.
For costs, we targeted at environmental
conservation costs which include development
cost and additional cost required for estimated
quantities sold; for effects, economic effect
from reduction in electricity consumption
upon utilization, environmental conservation
effect and private effect which should be
obtained by Ricoh.
Private effects are identified by marketing
approach called conjoint analysis for consumers'
research.
As a result, we could confirm that development
of eco-friendly products have a great effect
socially and privately. |
| Cost |
Effect |
| Cost
Item |
Main
Cost |
Amount |
Economic
Effect |
Environmental
Conservation Effect |
| Private
Effect |
Social
Effect |
| R&D
Cost |
Energy-saving
unit development cost |
¥400
million |
Total
amount customers are likely to pay
¥2,683 million |
Reduction
in electricity cost
¥2,544 million |
Amount
of CO2 reduction
39,481t |
| Cost
of mold, fixture, parts, etc |
¥205
million |
|
| Targeting at domestic
sales subsidiaries, costs, economic effects,
environmental conservation effects are calculated
based on estimated unit sales and duration
of service for 5 years. |
| Target Cost: Management
Activity Cost |
Environmental Conservation
Cost Effectiveness for Development of Environmental
Impact Information System
Based on the idea of eco-balance, we keep
developed a global environmental impact
information system for centralized data
management for every process as a tool to
keep track of environmental impact from
entire business activities and to reduce
such impact effectively.
As a matter of course, environmental accounting
is an indispensable system for calculation.
We calculated cost effectiveness on the
assumption that effects including reduction
in cost for preparation of Type III eco-labels
and personnel for performance control will
last for 5 years against system investment
and personnel cost required for development.
For environmental conservation effect, calculation
was made based on amount of CO2
reduction through improved air compressor
operation while controlling performance
by using system. |
| Cost |
Effect |
| Cost
Item |
Main
Cost |
Amount |
Economic
Effect |
Environmental
Conservation Effect |
| Management Activity Cost |
System
Spending |
¥196
million |
Reduction
in personnel cost for data acquisition,
analysis etc
¥1,550 million
Electricity cuts by power monitoring
system
¥25.6 million |
Amount
of CO2 reduction
655.6t |
| Administrative and
Maintenance Expenses including Personnel
& Maintenance Cost |
¥361 million |
|
| The amounts of expenses
and effects are calculated assuming system
depreciation over 5 years. |
|
Corporate
Environmental Accounting of the Ricoh
Group for FY2000
