Sustainable environmental management indicators -Environmental Accounting FY2003-

Back to the latest Environmental Accounting

Review of Corporate Environmental Accounting in Fiscal 2003

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.

Changes in Ricoh Group's Sustainable Environmental Management Indicators

Changes in Ricoh Group's Sustainable Environmental Management Indicators

Ricoh Group's Sustainable Environmental Management Indicators (Fiscal 2003)
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.
Ricoh Group's Corporate Environmental Accounting in fiscal 2003(24.3KB)

Ricoh Group's Corporate Environmental Accounting in fiscal 2003

Page Top

Segment Environmental Accounting

Segment Environmental Accounting of Product Energy Conservation (Benefit on cost in color 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 Item 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 Item Benefits Reduction item Amount
Business area cost Resource circulation cost ¥471.4 million Reduction in
social cost
¥274.0 million NNOx
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

Page Top

An overview of our environmental accounting from FY 1998 to FY 2012

Back to the latest Environmental Accounting

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

Page Top