Skip to main content Skip to first level navigation
Skip to main content First level navigation Menu
Breadcrumbs

Share

Main content

Sustainable environmental management indicators -Environmental Accounting FY2008-

Summary

The Ricoh Group disclosed its environmental accounting for the first time in 1999. Subsequently, the Group has introduced corporate environmental accounting to determine the status of sustainable environmental management and disclose related information, as well as segment environmental accounting etc., that are used to prepare environmental action plans, select measures, and verify achievements. Thus efforts are being made to establish environmental accounting as a tool for sustainable environmental management.

Corporate environmental accounting

The Ricoh Group calculates and announces the cost spent in its business activities for environmental conservation, as well as their conservation and economic effects, as quantitatively as possible. The Ricoh Group prepares such data in compliance with the Environmental Accounting Guidelines 2005?set by the Japanese Ministry of the Environment?by taking the necessary portion from the Eco Balance data and calculating the cost and effect (in quantity and monetary value) of its environmental conservation activities based on its own formulas and indicators. In fiscal 2007, the Group started disclosing its environmental impact from a product lifecycle perspective, in addition to direct environmental impact (i.e., environmental impact generated at business sites).

Segment environmental accounting

This is an environmental accounting tool to forecast the costs and environmental conservation/economic effects of individual investment activities and projects for environmental conservation from among all processes of operations and to evaluate their results, in order to judge the effectiveness of respective measures.

Segment Environmental Accounting for Fiscal 2008

Sustainable environmental management indicators of the entire product lifecycle (fiscal 2008)

Sustainable environmental management indicators of the entire product lifecycle (fiscal 2008) Results in fiscal 2008 Calculation formula
REP: Ratio of Eco Profit 2.08 Total economic benefit (35.82) / Total environmental conservation cost (17.26)
REE: Ratio of Eco Effect 1.33 [Total economic benefit (35.82) + Social cost reduction values (-15.37 + 2.60)] / Total environmental conservation cost (17.26)
Eco Index 44.1 Gross profit on sales (854.3) / Total environmental impact (1,938,032.5) x 105
RPS: Ratio of Profit to Social Cost 2.8 Gross profit on sales (854.3) / Total social cost (300.86)

Tap to see the table

  • *Unit: Billions of yen.
  • *Environmental accounting data: Base units for raw materials production and fuel consumption were revised in fiscal 2008 to reflect the start of the new Environmental Action Plan. Evaluation was made using methods based on newly acknowledged information. The numerical figures in the graphs on the previous page were corrected to reflect these changes.

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, parts, etc.
¥583.3 millon Sales contribution ¥1,155.3 million Reduction in payment for consumed power supply
¥422.5 million
Reduction in CO2 emissions
6,943.4 tons

Tap to see the table

  • *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 a month. Internal benefits refer to benefits on gross profits in sales results in fiscal 2008.

Segment environmental accounting of the product recycling business (Japan)

Costs Effects
Economic benefits Effect on environmental conservation
Items Costs Items Benefits
Product recycling cost ¥632 million Sales ¥12,999 million mount of resource recovery: 26,440 (t)
Down 2,229 (t) from that in the previous year
Amount of final disposal: 117 (t)
Collection/resource recovery cost ¥2,197 million
Social effect ¥2,115 million
Total cost ¥2,829 million

Tap to see the table

  • *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 (Japan)

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 ¥273.7 million Reduction in lighting and heating expenses ¥1,424.6 million CO2 emissions
(Reduction amount)
48,956.0(t)

Tap to see the table

  • *The amount of reduction in CO2 emissions is the total of reductions realized through measures taken by respective sites to prevent global warming (including the effects of reduction measures taken in the past).

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 ¥1,460.8 million Reduction in discharged matter disposal costs -¥70.9 million Final amount of discharged matter disposal (reduction amount) -159.4 (t)
Proceeds from sale of valuables ¥299.6 million

Tap to see the table

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 ¥269.7 million Reduction in
social cost
¥107.1 million NOx
SOx
BOD
Environmentally sensitive substances (calculated with the conversion potential)
-5.3 (t)
0.3 (t)
-2.8 (t)
428.7 (t)
Amount of risk avoidance effect (incidental effect) ¥2,077.2 million

Tap to see the table

Fiscal 2008 Review of environmental accounting

Environmental accounting is designed to present the costs incurred for environmental conservation activities during a given period in comparison to the resulting benefits. Such costs and benefits represent how well the environmental impact reduction activities by the Ricoh Group and across the entire lifecycle of its products performed. We therefore present the environmental conservation effects and environmental impact for the entire product lifecycle, including during our upstream and downstream operations, together with those by the Ricoh Group, so that readers can distinguish and compare the environmental conservation effects and environmental impact of the Group and those generated throughout the product lifecycle.
When we look at the overall trends of the Ricoh Group, the Eco Index, the ratio of the gross profit on sales to the total environmental impact, decreased from fiscal 2007 due to sluggish economic activity both in Japan and overseas as well as the strong yen (See graph (2)). The Ratio of Eco Profit, an indicator of the cost effectiveness of sustainable environmental management activities, and the Ratio of Eco Effect, an indicator that takes into account social cost reduction values, dropped slightly from fiscal 2007 due to the negative global economic environment (See graph (1)). Corporate environmental accounting data* by item indicates that, while the environmental costs for recycling in both the upstream and downstream processes decreased from fiscal 2007, the costs and investment for R&D for future environmental impact reduction (such as R&D to improve environmental features of the products) increased. Economic benefits showed a slight drop in fiscal 2008, reflecting a decrease in production due to the world economic slump and lower sales of recycled products. We will continue strengthening our energy-saving, resource conservation and pollution prevention measures not only within the Group’s operations but also for the entire lifecycle of our products, while further working to reduce the environmental impact and improve the efficiency of our business operations, so that we may realize complete sustainable environmental management.

  • *Graph (1) shows ratio of eco profit, ratio of eco effect, and ratio of eco effect of the entire product life cycle.
  • *Graph (2) shows eco index, gross profit on sales, and eco index of the entire product life cycle.

Changes in the Ricoh Group's sustainable environmental management indicators

(1) Ratio of eco profit and Ratio of eco effect

(2) Eco indicator

The Ricoh Group's sustainable environmental management indicators (fiscal 2008)

The Ricoh Group's sustainable environmental management indicators (fiscal 2008) Results in fiscal 2008 Calculation formula
REP : Ratio of Eco Profit 2.08 Total economic benefit (35.82) / Total environmental conservation cost (17.26)
REE : Ratio of Eco Effect

2.25

Total economic benefit (35.82) + Social cost reduction values (0.3 + 2.60)] / Total environmental conservation cost (17.26)
Eco Index
2,484.8 Gross profit on sales (854.3) / Total environmental impact (34,380.6) x 105
RPS : Ratio of Profit to Social cost 160.1 Gross profit on sales (854.3) / Total social cost (5.34)

Tap to see the table

  • *Unit: Billions of yen.

Sustainable environmental management indicators of the entire product lifecycle (fiscal 2008)

Sustainable environmental management indicators of the entire product lifecycle (fiscal 2008) Results in fiscal 2008 Calculation formula
REP : Ratio of Eco Profit 2.08 Total economic benefit (35.82) / Total environmental conservation cost (17.26)
REE : Ratio of Eco Effect 1.33 Total economic benefit (35.82) + Social cost reduction values (-15.37 + 2.60)] / Total environmental conservation cost (17.26)
Eco Index 44.1 Gross profit on sales (854.3) / Total environmental impact (1,938,032.5) x 105
RPS : Ratio of Profit to Social cost 2.8 Gross profit on sales (854.3) / Total social cost (300.86)

Tap to see the table

  • *Unit: Billions of yen.

An overview of our environmental accounting from FY 1998 to FY 2014