Evaluation Methods -Environmental Accounting FY2001-

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Fiscal 2001 Ricoh Group Corporate Environmental Accounting

Fiscal 2001 Ricoh Group Corporate Environmental Accounting(24KB))

Fiscal 2001 Ricoh Group Corporate Environmental Accounting

Segment Environmental Accounting

Corporate environmental accounting targets corporate environmental activities as a whole but can be used in decision making only in limited cases. However, segment environmental accounting, in which corporate environmental activities are conducted by project, can be used in decision making in many cases. Segment environmental accounting is especially useful in predicting the effects of environmental activities. The Ricoh Group announced its adoption of segment environmental accounting in 1999 and put it into practice by taking various measures. In fiscal 2001, the Group continues its efforts to promote sustainable management by conducting segment environmental accounting at various opportunities.

The Ricoh Group's Segment Environmental Accounting for its Environmental Action Plan (fiscal 2002-2004)

Estimated Costs and Effects of Reduction in CO2 Emissions at Business Sites

Estimated effects of the greenhouse gas emission reduction plan at business sites

Total CO2 emissions generated at production sites and non-production sites will be reduced by 13%, and those in terms of the CO2 emissions per sales unit, by 62%, by fiscal 2010 (Ricoh only, compared with fiscal 1990). Accordingly, the Ricoh Group is planning to reduce its CO2 emissions per sales unit in fiscal 2004 by 20% from that of fiscal 2000. Specific measures include improving processes; introducing highly efficient facilities including cogeneration systems, and using new types of energy. Effects of 105 energy-saving investment projects are estimated by segment environmental accounting.

(Unit:million of yen)
Costs   Effects EI value
(t/100
million yen)
Item Amount Economic benefits Effect on
environmental
conservation
Energy-saving
investments
(105 cases)		 1,608.8 Item Amount Item Amount
reduced(t)
Reduction in
heat and
light expenses		 1,640.8 Reduction in
CO2 emissions		 39,019.4 2,425.3
  • *Costs are calculated from the investment plan. Effects are calculated using the depreciation period for equipment.

Estimated Costs and Effects of Reduction in CO2 Emissions from Energy-Saving Products

Estimated effects for the energy-saving product marketing plan

The Ricoh Group is making sincere efforts to reduce the amount of power the products consume while in operation or on standby. CO2 reduction and marketing contribution to gross profit are estimated by the number of products to be marketed from fiscal 2002 to 2004.

(Unit:million of yen)
Costs Effects EI value
(t/100
million yen)
Item Main costs Amount Economic benefits Effect on
environmental
conservation
Corporate
effect		 Customer
effect
Research
and
development		 Development of energy-saving units 600 Effect on
gross margin
18,160		 Reduced
electricity
expenses
8,908		 Reduced
CO2 emissions
138,265t		 15,227
Molds, jigs,
and parts		 308
  • *Costs are estimated from past development costs. Effects are estimated from the number of products scheduled to be marketed between fiscal 2002 and fiscal 2004. Figures for reduction in heat and light expenses and CO2 emissions are estimated from the amount reduced over three years, from fiscal 2002 to fiscal 2004, on the assumption that the machine is used eight hours a day, twenty days a month.

Estimated Costs and Effects of Reduction in Chemical Substances at Business Sites

Estimated effects for the chemical substance reduction plan

How much underground water pollution may be avoided by complete elimination of dichloromethane and other effects was estimated by segment environmental accounting.

(Unit:million of yen)
Costs Effects EI value
(t/100
million
yen)
Economic benefits Effect on environmental
conservation
Item Amount Item Amount Item Amount(t)
Development
expenses		 294 Avoidance of
risk in soil
and
groundwater
contamination		 900 Dichloromethane
used		 120.3
0		 11.8
Investments 40
Personnel
expenses		 684 Reduced
production
loss		 5.19
Other costs 1.5
  1,019.5   905.19      

Segment Environmental Accounting in Fiscal 2001

Estimated Costs Efficiency of an Ice Thermal Storage/Chilled Water System in Environmental Conservation

To update the air-conditioning systems at its manufacturing plants, Ricoh Microelectronics Co., Ltd., one of the Group companies, conducted segment environmental accounting to compare an ice thermal storage/chilled water system with an absorption-type chilled/hot water generation system and determined which is better for environmental conservation and cost reduction. From its results, Ricoh Microelectronics decided to introduce the ice thermal storage/chilled water system because, although the initial cost of the system was ¥34.45 million more than that of the absorption-type system, it would reduce running costs by 30% and CO2 emissions by 60%.

Costs Effects* EI value
(t/100
million
yen)
Economic benefits Effect on environmental
conservation
Item Main costs Amount Item Amount
reduced		 Item Amount
reduced
Business
area costs		 Investment 34.45
(millions
of yen)
(Difference
from the
conventional
method)		 Heat
and
light
expenses		 146
(millions
of yen)		 CO2
emission		 15,015(t) 8,884.6*
  • *Effects are calculated using the statutory depreciation period for equipment.
  • *Calculated from total investment (¥169 million)

Estimated Costs and Effects of Semiconductor plant at the Yashiro Plant in Environmental Conservation

In fiscal 2001, the Yashiro Plant, a Ricoh production site, introduced a system that recycles the hydrofluoric acid used in the semiconductor etching process, as well as an inverter control system. The segment environmental accounting shown below reveals that this system significantly contributed to environmental conservation and cost reduction.

(Unit:million of yen)
Method of
conserving
energy or
resources		 Costs Effects EI value
(t/100
million
yen)
Economic benefits Effect on
environmental
conservation
Invest-
ment		 Mainte-
nance		 Reduced heat
and
light
expenses		 Subsidies Reduced
CO2
emissions
(t)		 Reduced
discharged
waste
(t)
Inverter
control
system		 131.5 1.5 177.5 100.0 5,762 - 3,807.8
(CO2)
Hydrofluoric
acid
recycling		 120.0 33.5 97.8 6,324 1,500
Filtration
device		 26.5 5.6 4.6 148 -
Free-cooling
system		 25.8 0.6 27.1 904 -
Total 303.8 41.2 307.0 100.0 13,137 1,500
  • *Effects are calculated using the statutory depreciation period for equipment.

Environmental Conservation Costs and Effects of a Cleaning Process in Ricoh Industrie France

In fiscal 2000, Ricoh Industrie France S.A. switched from water to air pressure to clean its thermal paper production line. Along with water recycling by steam collection, the switch reduced the company's annual water consumption by 43.4%, down from 25,353 m3 per year. Ricoh Industrie France saved on the cost of wastewater disposal using this system.

Costs Effects* EI value
(m3/100
million yen
t/100
million yen)
Economic benefits Effect on environmental
conservation
Item Main costs Amount Item Amount
 Item Amount
Business
area costs		 Investment 34.8 Industrial water 1.6 Industrial
water		 21,601(m3) 62,072
(Industrial
water)
17,486
(Waste)
Maintenance 0.0 Waste
disposal
expense		 98.2 Waste
disposal
amount		 6,085(t)
  • *Effects are calculated for three years, starting from fiscal 1999.

Environmental Conservation Costs and Effects in Developing QSU Products

In fiscal 2001, Ricoh reduced CO2 emissions of the products marketed by the Ricoh Group worldwide by approximately 16,000 tons through incorporating QSU technology into its digital multifunctional copiers, the Aficio 1035/1045 and 1022/1027 series (imagio Neo 350/450 and 220/270 series, respectively). The reduction is equal to ¥1,040 million in electricity bills. It was discovered in segment environmental accounting that Ricoh's development of energy-saving products roughly corresponds to a cost reduction of ¥1,048 million.

Costs Effects EI value
(t/100
million
yen)
Economic benefits Effect on
environmental
conservation
Item Main costs Amount Corporate effect Customer effect
Research
and
development		 Development of
energysaving
units		 400
(millions
of
yen)		 Effect on
gross
benefit
1,048
(millions of
yen)		 Reduced
electricity
expenses*
1,041
(millions of
yen)		 Reduced CO2
emissions*
16,161(t)		 2,671.2
Molds,jigs.
and parts		 205
(millions
of
yen)
  • *Annual "Reduced electricity expenses" and annual "Reduced CO2 emissions" are calculated on the assumption that the machine is used eight hours a day, twenty days a month.
    Contribution amount to gross margin = gross margin amount x contribution rates to gross margin by environmental efficiency

Environmental Conservation Costs and Effects in the Recycling Business in 2001*

Efforts made in Japan include improving the collection, recovery, and recycling efficiency by making use of a recycling information-sharing system and nationwide recycling system. Increased profitability will be achieved by significantly reducing the cost of collection and disposal through an advanced venous logistics system and increasing the sales of recovered machines. For regions other than Japan, it was decided that used products will be collected, recovered, and sold within the same region. Efforts are being focused on improving collection rates and the expansion of recycling sites. The Group's recycling activities are thus evolving into a recycling business.

(Unit:million of yen)
Costs Effects
Economic benefits Effect on environmental
conservation
Item of cost Amount Item Amount
Product recycle cost 572 Sales amount 937 Resources recovered
26,920t
A 4,537-t increase
from the
previous year		 Final disposal 350t
A 497-t decrease
from the
previous year
Collection/resource
recovery cost		 2,802
Sales Effects 2,150 Resource recovery rate
96.3% (FY 2000) 98.7% (FY 2001)
Total cost 3,374
  • *Data is for Japan only. The figure for "Social effect" is the amount that customers saved on the cost of waste disposal.

New Framework for Internal Environmental Accounting

In the past, environmental accounting systems were used as tools to evaluate and disclose environmental impact reduction effects and environmental conservation costs. For the purpose of supporting decision-making processes in environmental management, however, we need something more. The Ricoh Group measures and evaluates the environmental impact generated in all relevant processes (environmental impact potential) as one of the approaches for a new environmental accounting taking the eco-balance into consideration.

New Framework for Internal Environmental Accounting (24KB)

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An overview of our environmental accounting from FY 1998 to FY 2011

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  • Indicators The Ricoh Group calculates environmental preservation costs and benefits based on calculation formulas and indicators developed by Group companies.

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