| Review of Corporate Environmental
Accounting in Fiscal 2003 |
Review of Corporate Environmental Accounting
The ratio of eco effect, an important indicator
measuring the effect on cost in environmental conservation activities,
was substantially improved in fiscal 2003 (see graph(1)). This improvement
is attributable to significant growth in sales of recycled products and
other environmentally conscious products. The environmental conservation
cost, however, is at the same level as that in fiscal 2002. The ratio of
eco profit remained stable, growing 20-30% every year since the current
environmental action plan started in fiscal 2002 (see graph(1)). By the
end of fiscal 2004 (the year the plan ends), this percentage is predicted
to be approximately twice that of when the action plan started. The fiscal
2003 Eco-Index, which indicates the level of sustainable environmental management
for the entire business, jumped 46% from that in fiscal 2001 thanks to an
approximate 30% reduction in environmental impact through Groupwide zero-waste
and chemical substance reducing activities. Gross profit on sales grew approximately
10% from that in fiscal 2001 (see graph(2)). Like the ratio of eco profit,
gross profit on sales is predicted to be twice that in fiscal 2001. An overview
of the corporate environmental accounting data shows that
the Ricoh Group's total environmental conservation cost increased only slightly
since the previous year. This proves, however, that more environmental conservation
costs were incurred for environmental activities involved in products and
social contribution toward environmental conservation than in environmental
activities done by business sites because product recycling costs and social
activity costs increased while costs from business areas and environmental
management activities decreased. The economic benefits on environmental
conservation cost improved in almost all items. The effect on cost for product
recycling in particular improved significantly, resulting in a surplus.
The amount to profit by R&D on products increased to roughly 1.5 times
that in fiscal 2002. This is believed to be the result of the emphasis that
the Ricoh Group has placed on the development of environmentally conscious
products over the past several years. In addition, although environmental
conservation effects significantly improved in terms of the amount of final
waste disposed and chemical substances emitted, CO2 emissions
fell only slightly and remain a challenging issue in the prevention of global
warming in the future.
 |
Ricoh Group's Sustainable Environmental Management
Indicators
| Sustainable
environmental management indicators |
Results
in fiscal 2003 |
Calculation
formula |
| REP : Ratio of Eco
Profit |
1.96 |
Total economic benefit
(30.29) /Total environmental conservation cost (15.43) |
| REE : Ratio of Eco
Effect |
2.24 |
{Total economic benefit
(30.29) + Amount of reduction in social costs (1.24+3.07)}/Total
environmental conservation cost (15.43) |
| Eco Index |
1,753.1 |
Gross profit on sales
(¥765,600,000 thousand) /Total environmental impact (436,703) |
| RPS : Ratio
of Profit to Social cost |
122.4 |
Gross profit on sales
(765.6) /Total social cost (6.256) |
|
* Monetary units are indicated in billions of
yen unless otherwise indicated.
|
|
| Segment
Environmental Accounting |
|
|
|
Segment Environmental Accounting of Product Energy Conservation
(Benefit on cost in QSU product development)
| Costs |
Effects |
| Economic
benefits |
Effect
on environmental conservation |
| Item |
Main
costs |
Costs |
Internal
benefits |
Customer
benefits |
| R&D
cost |
Cost of
developing energy-saving units |
400 millon
yen |
Amount
of profit contribution
2,305 million yen |
Reduction
in payment for consumed power supply
918 million yen |
Reduction
in CO2 emissions
15,046 (t) |
| Cost of
molds, jigs, parts, etc. |
512 millon
yen |
|
| * |
The reduction in payment
for consumed power supply and CO2 emissions is the annual benefit
brought from eight hours of operation per day, 20 days of operation
a month. Internal benefits refer to benefits on gross profits in sales
results in fiscal 2003.
|
Segment Environmental Accounting of the Product Recycling Business (Japan)
| Costs |
Effects |
| Economic benefits |
Effect on environmental conservation |
| Items |
Costs |
Items |
Benefits |
| Product
recycling cost |
716 million yen |
Sales |
2,237 million
yen |
Amount
of resource recovery: 29,228 t
Up 2,806 t from that in the previous year |
Amount
of final disposal: 23.4 t
Down 40 t from that in the previous year |
| Collection/resource
recovery cost |
2,929 million
yen |
Social
effect |
2,338
million yen |
| Total
cost |
3,645 million
yen |
|
| * |
Social effect refers to
the cost of waste disposal that customers no longer have to pay. |
Segment Environmental Accounting of Energy Conservation
Activities at Business Sites
(The Entire Ricoh Group)
| Costs |
Effects |
| Economic benefits |
Effect on environmental conservation |
| Item |
Main cost |
Costs |
Item |
Benefits |
Reduction item |
Amount |
| Business area cost |
Cost of global warming prevention |
¥310.3 million |
Reduction in lighting and heating expenses |
¥17.5 million |
CO2 emissions |
7,325.3 (t) |
|
| * |
The following calculation formula is
used for CO2 emissions, in consideration of the sales growth
since the previous year. Reduction in CO2 emissions in
a particular year = CO2 emissions in the previous year
x (sales in that year/sales in the previous year) - CO2
emissions in that year.
|
Segment Environmental Accounting of Recycling
Activities at Business Sites
(The Entire Ricoh Group)
| Costs |
Effects |
| Economic benefits
|
Effect on environmental
conservation |
| Item |
Main cost |
Costs |
Items |
Benefits |
Reduction item |
Amount |
| Business area
cost |
Resource circulation
cost |
¥757.8 million |
Reduction in waste disposal
expenses |
¥132.6 million |
Amount of waste
disposed/ reduced |
646.6 (t) |
| Proceeds from sale of valuables |
¥506.4 million |
|
Segment Environmental Accounting of Pollution
Prevention Activities at Business Sites
(The Entire Ricoh Group)
| Costs |
Effects |
| Economic benefits |
Effect on environmental
conservation |
| Item |
Main cost |
Costs |
Items |
Benefits |
Items |
Amount |
| Business area
cost |
Pollution prevention
cost |
¥471.4 million |
Reduction in
social cost |
¥274.0 million |
NOx
SOx
BOD
PRTR substances (Calculated with the conversion potential) |
7.4
(t)
5.0 (t)
-9.8 (t)
1,882.6 (t) |
| Amount of risk avoidance
effect (incidental effect) |
¥868.7 million |
|
|
