| Review of Corporate Environmental Accounting for Fiscal 2005 |
Review of Corporate Environmental Accounting
During the fiscal year, we reconsidered our method of calculating incidental effects because it became apparent that the conventional method could cause an overestimation. "Ratio of Eco Profit" and "Ratio of Eco Effect," indicators of the cost-effectiveness of sustainable environmental management activities, have been calculated using a new calculation method (see the dashed lines in graph (1)).
The results obtained under the conventional method improved from those for fiscal 2004 (see the solid lines in graph (1)). We will basically use the new method in the future. The Eco Index, which indicates the level of sustainable environmental management for the entire business, considerably improved in fiscal 2005 from fiscal 2004 thanks to significant decreases in the final waste disposal amount and emissions of chemical substances subject to PRTR as well as an increase in gross profit on sales (see graph (2)).
Changes in Ricoh Group's Sustainable Environmental Management Indicators
Corporate environmental accounting data show that upstream and downstream costs decreased while administration costs increased. As for economic effects, those from sales of recycled products have grown significantly. On the other hand, environmental conservation effects could not offset increases in CO2 and NOx, which reflected the growth of the business, although the Ricoh Group as a whole is striving to improve its manufacturing processes, aiming to save energy and resources.
We, however, succeeded in reducing the final waste disposal amount and emissions of chemical substances subject to PRTR, which allowed us to reduce social costs significantly from fiscal 2004. Also, environmental impact of the Ricoh Group as a whole fell 16%. In the future, we will endeavor to reduce environmental impact to a further degree and promote efforts toward the realization of sustainable environmental management.
Ricoh Group's Sustainable Environmental Management Indicators (Fiscal 2005)
| Sustainable environmental management indicators |
Results
in fiscal 2005 |
Calculation formula |
| REP : Ratio of Eco Profit |
1.83* |
Total economic benefit (29.27) /Total environmental conservation cost (15.98) |
| REE : Ratio of Eco Effect |
2.09* |
{Total economic benefit (29.27) + Amount of reduction in social costs (1.16+2.90)}/Total environmental conservation cost (15.98) |
| Eco Index |
2,199.8 |
Gross profit on sales (¥799,600,000 thousand) /Total environmental impact (363,491) |
| RPS : Ratio of Profit to Social cost |
150.6 |
Gross profit on sales (799.6) /Total social cost (5.31) |
|
* Represents results after the revision to the method of calculating incidental effects
* Monetary units are indicated in billions of yen unless otherwise indicated.
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| Segment Environmental Accounting |
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|
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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 |
Amount of profit contribution
¥2,312.6 million |
Reduction in payment for consumed power supply
¥1,387.5 million |
Reduction in CO2 emissions
22,742.8 (t) |
| Cost of molds, jigs, parts, etc. |
¥671.5 millon |
|
| * |
The reduction in payment for consumed power supply and CO2 emissions is the annual benefit brought from 8 hours of operation per day, 20 days of operation a month. Internal benefits refer to benefits on gross profits in sales results in fiscal 2004.
|
Segment Environmental Accounting of the Product Recycling Business (Japan)
| Costs |
Effects |
| Economic benefits |
Effect on environmental conservation |
| Items |
Costs |
Items |
Benefits |
| Product recycling cost |
¥740 million |
Sales
|
|
| Social effect |
|
| ¥6,421 million |
|
| ¥2,533 million |
|
Amount of resource recovery: 31,660(t)
Down 1,436 (t) from that in the previous year |
Amount of final disposal: 199(t) |
| Collection/resource recovery cost |
¥3,053 million |
| Total cost |
¥3,793 million |
|
| * |
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 |
¥741.9 million |
Reduction in lighting and heating expenses |
¥105.8 million |
CO2 emissions |
3,432.4(t) |
|
| * |
Reduction in CO2 emissions is a total of amounts reduced through measures to prevent global warming at production sites.
|
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 |
¥1,068.0 million |
Reduction in waste disposal expenses |
¥ -3.0 million |
Amount of waste disposed/ reduced |
549.1(t) |
| Proceeds from sale of valuables |
¥1,327.6 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 |
¥486.6 million |
Reduction in
social cost |
¥378.6 million |
NOx
SOx
BOD
PRTR substances (Calculated with the conversion potential) |
-1.3(t)
0.6(t)
3.2(t)
2,543.8(t) |
| Amount of risk avoidance effect (incidental effect) |
¥1,127.5 million |
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