Group Environmental Report 2005

Environmental Accounting
In order to grasp the cost and eﬀect of its environmental protection activities in a quantitative manner, FDK Group introduces an environmental accounting system and discloses the data to the public. We aim at associating the data to our environmental management
system and promoting more eﬃcient environmental activities.

Environmental Accounting Result in ﬁscal 2004
Unit: million yen

Items

Scope

ResultPollution
prevention costs

Costs incurred to prevent air pollution and water contamination (fees for water treatment facilities) and other activities

74Environmental
protection costs

Costs of energy-saving measures, as well as costsof global warming reduction measures

52

Costs of resources
recycling

Costs incurred for waste reduction and disposal, as
well as for water conservation, rainwater usage andother measures aimed at eﬃcient resources usage

96

Upstream/downstream
costs

Costs of lowering the environmental burden imposed
upstream and downstream by manufacturing andservice activities (costs incurred for recycling/reuse ofwaste products and packaging, Green Procurement, etc.)

25

Management costs

Management-related environmental protection costs including
personnel expenses for environmental promotion activities andcosts associated with acquiring and maintaining ISO14001
certiﬁcation, measuring the environmental burden, greeniﬁcation
programs, environmental reporting and environmental publicity

65

Environmental protection costs for R&D activities andcosts of environmental solutions business activities (GreenProduct/environmental technology design and development costs, environmental solutions business costs, others)

60

Costs

Costs inbusiness
operations

R&D and solutions
business costs
Social activities costs
Environmental restoration
costs

00

Total372Pollution
prevention eﬀects

Savings from avoidance of operating losses stemmingfrom failure to observe(*1),environmental laws andregulations as well as contribution by environmental
protection activities to value added in manufacturing（*2)

43Environmental
protection eﬀects

Cost savings from reductions in electricity, oil andgas consumption

101

Resource recycling eﬀects

Cost savings from reduction and eﬀective use of waste

73
19

Eﬀects on
business
operations

EﬀectsEnvironmental protection costs stemming from participation in social activities, such as participation in organizations concerned with environmental preservation
Costs of environmental restoration operations (eliminating soil andgroundwater contamination, environmental compensation, etc.)

Upstream/downstream eﬀects

Sales value of recycled and reused products
Eﬃciency enhancement through ISO14001 system
implementation, eﬀects of employee training, corporate
image enhancement from environment-related publicity

135

R&D/solutions businesseﬀectsContribution to sales made by Green Products, other Ecofriendly products and the environmental solutions business

35

Environmental restorationeﬀectsSavings of compensation payments to residents for groundwater and soil contamination（*3）

0Management eﬀects406

Total

We indicated 0 for items whose value is less than 1 million yen.
*1 Value of avoidance of operating losses : (Added value)/(Days of operation)×(Estimated days lost)*2 Value contributed by environmental protection activities :(Added value)×(Ongoing operating costs of all environmental protection facilities)/(Total cost generated)*3 Value of avoidance of compensation payments to residents: Estimated savings assuming that risks were able tobe averted.

Cost

Unit: million yenDepreciation

Eﬀects

Unit: million yen

Investment in ﬁscal 2004

2

Actual eﬀects

193

Past investment

88

Assumed eﬀects

213

282

Total cost

Actual eﬀects include proﬁts generated by saving public utility consumption and selling of recyclable wastes.
Assumed eﬀects mean proﬁts assumed as economically eﬀective under a certain deﬁnition. (Environmental
protection eﬀects against the added values obtained from our production activities)

Environmental protection eﬀects (Total burdens in ﬁscal 2003 − Total burdens in ﬁscal 2004)
CO2 emission

11,198 t −CO2

Total wastes generated

265 t

Total wastes in the PRTR list generated

2t

Shift of costs and eﬀects

Unit: million yen

Fiscal 2001

Fiscal 2002

Fiscal 2003

Fiscal 2004

Costs

650

506

486

372

Eﬀects

917

588

521

406

Characteristics of ﬁscal 2004
Environmental Accounting
Environmental costs
Reductions of environment-related costs in ﬁscal 2004 include
pollution prevention measures done in-house instead ofoutsourcing them and the depreciation cost was decreased
due to the environmental protection facility totally depreciated in the previous ﬁscal year.
Whereas, increases of the cost in this ﬁscal year include introduction of lead-free soldering equipment and R&D cost consisting of labor cost for developing eco-friendly products.

Economical eﬀects
Energy-saving eﬀects were signiﬁcantly reduced due to theclosure of economical eﬀect calculation period for facilities
invested in the past, and recycle eﬀects of materials for manufacturing ferrites reduced to zero due to the termination ofmanufacturing the product domestically.
Operation of the ECO-DB, a unique database of FDK Groupon the environmental burden of chemical substances helped
reducing person-hours for tabulating total chemical substances
included in products. Estimated eﬀects showed an increase
due to the uplifted sales of eco-friendly products.

Basic Data for Environmental
Accounting in ﬁscal 2004
Accounting Period
April 1, 2004 ‒ March 31, 2005

Scope of Data Collation
Plants of FDK Corporation in Japan (incl. FDK Engineering
Co., Ltd. and FDK Energy Co., Ltd.)Calculation Standards for Environmental Protection Costs
・Method of depreciation cost collation
Calculated using the straight-line method for a use life of ﬁve years.
・ Rules for apportioning mixed costs
Only the portion related to environmental preservation is counted.
・ Labor cost
Labor costs incurred in the scope of data collation are
included in the environmental accounting.

Calculation Standards for Eﬀects ofEnvironmental Protection Measures
・Scope of economic eﬀect
It includes actual and estimated eﬀects on environmental
protection activities.
・Accounting period for calculating investment eﬀects
Accounting period of actual eﬀects is set to ﬁve years sameas the depreciation period.
As of ﬁscal 2004, FDK Group calculated its environmental accounting separatelyfrom that of Fujitsu Corporation. However, the calculation is made in accordancewith Fujitsu Group s Environmental Accounting Guideline 2003, in order to maintainthe data consistency.

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