Social & Environmental Report 2006

Environmental Accounting
Costs and eﬀects of environmental protection measures are grasped, shared and used for identifying potential problems.

In order to grasp the cost and eﬀect of the environmental protection activities in a quantitative manner, FDK Group has introduced anenvironmental accounting system and has been disclosing the data to the public since 2001. We aim at associating the data to our environmental management system and promoting more eﬃcient environmental activities.

Environmental Accounting Result inFY 2005
(Unit: million yen)Accounting Period
April 1, 2005 to March 31, 2006
Scope of Data Collation
Plants of FDK Corporation in Japan

Costs in Environmental
business protection costs
operations Costs of resources
recycling＊RoHS stands for Restriction of the use of certain Hazardous Substance inelectrical and electric equipment.

34

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

101R&D andsolutions business costs

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

51

Social activities costs

Environmental protection costs stemming from participation insocial activities, such as participation in organizations concernedwith environmental protection

0Costs

Upstream/downstream costs

Environmental restoration Costs of environmental restoration operations (eliminating soil andgroundwater contamination, environmental compensation, etc.)
costs0Total369

Effects

Pollutionobserve(*1),environmental laws and regulations as well as contribution byEffects prevention eﬀects environmental protection activities to value added in manufacturing(*2)
onCost savings from reductions in electricity, oil and 101 gas
business Environmental
consumption
operations protection eﬀects
Resource recycling eﬀects Cost savings from reduction and eﬀective use of waste

27
107
78

Upstream/downstream effects Sales value of recycled and reused productsManagement effects
R&D/solutions businesseffects
Environmental restoration
effects

19Eﬃciency enhancement through ISO14001 system implementation, eﬀects of employee training, corporate image enhancementfrom environment-related publicity

144

Contribution to sales made by Green Products, other Ecofriendly
products and the environmental solutions business41

Savings of compensation payments to residents for groundwaterand soil contamination (*3)

0Total416＊1＊2

Value of avoidance of operating losses: (Added value)/(Days of operation)×(Estimated days lost)
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 to be averted.

Site Report

Due to the reduced ongoing operation costs of all environmental
protection facilities, the ratio of monetary contributions for environmental protection activities to the added-values obtained fromproduction activities (or putative eﬀects) decreased.
On the other hand, increased use of ECO-DB, a database on substances placing burden on the environment, lifted up the eﬀect of
reducing man-hours for tabulation. Due to the increase in contribution by selling eco-friendly products, the putative eﬀects wereraised. As a result, the overall economic eﬀects of our environmental protection activities came to 416 million yen, or 2% up
over the previous year.

74

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

Environmental Protection
Activity Report

Economic Eﬀects

54

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

Savings from avoidance of operating losses stemming from failure to

Environmental CostThanks to the successful reduction of wastes, the cost for disposing and treating them were reduced. At the same time, pollution
prevention activities, once outsourced, was switched to in-house
activities, by which, ongoing operation costs of all environmental
protection facilities were successfully reduced. The completion of
the depreciation periods for environmental protection facilities set
up in the past enabled us to save the amount of depreciations.
On the other hand, there were some increase of labor costs
regarding developing eco-friendly products and green procurement for complying with RoHS*. After taking all of them in consideration, the amount of environment-related cost incurred inFY2005 was 369 million yen, down by 1% over the previous year.

55

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

Social performance

Environmental Accounting in FY2005

Results

Pollution
Costs incurred to prevent air pollution and water contamination
prevention costs (fees for water treatment facilities) and other activities(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 ofﬁve years.
・Rules for apportioning mixed costs
Only the portion related to environmental protection iscounted.
・Labor cost
Labor costs incurred in the scope of data collation areincluded in the environmental accounting.
Calculation Standards for Eﬀects of Environmental Protection Measures
・Scope of economic eﬀectIt 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.

Scope

Items

Management andOrganizational Structure

Basic Data for Environmental Accounting
in FY 2005

As of FY 2004, FDK Group calculated its environmental accounting separately from that of Fujitsu
Corporation. However, the calculation is made in accordance with Fujitsu Group s Environmental
Accounting Guideline 2003, in order to maintain the data consistency.

CostUnit: million yen

Eﬀects

Unit: million yen

Investment in FY 2005

3

Substantial effects

204

Past investment

63

Putative effects

212

Cost303

Total for effects

416

Total for Expenditure369

Depreciation

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

Shift of costs and eﬀects(million yen)1000
800600Costs

Effects

917
650

588
506

486 521400

372 406

369 416

2004

2005

200
02001

2002

2003

(FY)

14