Environmental Accounting

Clarion introduced environmental accounting in fiscal 2002 to more effectively promote its environmental activities in a sustainable manner. We compile and disclose environmental accounting figures in accordance with our own environmental accounting guidelines, which follow “the Environmental Accounting Guidelines” of the Ministry of the Environment. In fiscal 2005, we expanded the coverage of environmental impact data to our overseas sites. We are striving to gain understanding of our environmental protection activities through active disclosures of the environmental information.

Results for Fiscal 2006

In terms of environmental conservation costs in fiscal 2006, we made investments of ¥45 million and incurred costs of ¥1,611 million.

The amount of investment increased by ¥11 million over the previous year due to investments in facilities mainly aimed at constraining the environmental impact at the manufacturing stage (lead-free solder compatible facilities). Looking at costs, ¥1,436 million was appropriated as environmental remediation costs for measures to remove the fluorine that had been detected in some of the land owned by Clarion in our voluntary study. The very hot summer led to increases in the amount of electricity and fuel oil used. On the other hand, due to the benefits of producing lighter weight products and an increase in recycling (valuable item sales), total economic benefits (for the domestic sites) amounted to ¥69 million.

  • Relevant Period: April 1, 2006 - March 31, 2007
  • Sites Covered by the Data: Clarion and its domestic and overseas affiliates and subsidiaries (four domestic sites and 11 overseas affiliates and subsidiaries)

Environmental Conservation Costs (Domestic)

 Category  Main Activities  Fiscal 2004  Fiscal 2005 Fiscal 2006
 Investment  Cost  Investment  Cost  Investment  Cost
 (1) Costs within business areas  9  54  12  318  15  126
 Description  (1) Pollution prevention costs: Water receiving and purification tanks, wastewater maintenance control, etc.  2  25  4  277  0  21
 (2) Global environmental conservation costs: Inspection and maintenance of air-conditioners, etc.  7  9  7  8  15  12
 (3) Resource recycling costs: Processing and disposal of general and industrial waste, etc.  0  20  0  33  0  57
 (2) Upstream/ downstream costs  Expanded cardboard re-use, etc.  0  1  0  2  0  5
 (3) Administration costs  Certification cost, acquisition cost, and education cost, etc.  0  94  0  64  0  55
 (4) Research and development costs  Efforts to develop lightweight products, CTSA system, lead-free solder, etc.  20  47  23  47  30  25
 (5) Social activities  Nature conservation, afforestation, beautification, etc.  0  0  0  1  0  0
 (6) Environmental remediation costs  Provision for soil pollution cleanup  0  0  0  0  0  1,436
 Subtotal  29  197  34  433  45  1,611
 Total  225  467  1,656

    (Unit: Millions of yen)

    * Figures rounded to nearest million yen

Economic Benefits

 Category  Description  Fiscal 2004  Fiscal 2005  Fiscal 2006
 (1) Effects of environmental protection related to resources utilized in business activities  Utilities cost, purchasing cost of copy and EDP paper, etc.  △20  15  0
 (2) Environmental impact and waste resulting from business activities  Cost of general and industrial waste disposal, etc.  △3  8  2
 (3) Benefits related to goods and services produced by business activities  Benefits of producing lightweight products  55  55  43
 (4) Conservation effects mainly related to transportation  Gasoline and light oil usage fees, etc.  △1  6  △9
 (5) Amount of sales of valuable materials, etc.  Sales of valuable items  15  9  33
 Total  46  92  69

    (Unit: Millions of yen)

    * Figures rounded to nearest million yen

Environmental Conservation Benefits

1. Effects generated by costs within business areas

(1) Effects related to resources used in business activities

 Indicators for Environmental Conservation Benefits (unit)  Japan    Environmental Impact including 11 Overseas Sites
 Environmental Impact  Environmental Conservation Benefits
 Fiscal 2004  Fiscal 2005  Fiscal 2006  Fiscal 2006
 Amount of electricity used (MWh)  10,709  9500  10,405  △905    34,422
 Amount of fuel oil used (crude oil equivalent kl)  743  637  691  △54  2,289
 Amount of water used (1000t)  57  53  55  △2  508

(2) Effects related to environmental impact and waste produced by business activities

 Indicators for Environmental Conservation Benefits (unit)  Japan    Environmental Impact including 11 Overseas Sites
 Environmental Impact  Environmental Conservation Benefits
 Fiscal 2004  Fiscal 2005  Fiscal 2006  Fiscal 2006
 Amount of CO2 emissions (t-CO2)  4,683  3,920  4,403  △483    23,126
 Amount of wastewater discharged (1000t)  57  53  55  △2  439
 Amount of waste final disposal (tons)  19  2  2  0  -

2. Effects generated by upstream/ downstream costs

(3) Effects related to goods and services produced by business activities

 Indicators for Environmental Conservation Benefits (unit)  Japan    Environmental Impact including 11 Overseas Sites
 Environmental Impact  Environmental Conservation Benefits
 Fiscal 2004  Fiscal 2005  Fiscal 2006  Fiscal 2006
 Amount of waste recycled (tons)  1,192  920  1,276  △356    -
 Recycling rate (%)  98.4%  99.8%  99.6%  1.4%  -

Future Direction

Clarion intends to be a company with high transparency through active and timely disclosures of environmental accounting information. At the same time, we strive to make the environmental accounting more precise in order to make it an effective tool for environmental management assessment and business decision-making. In fiscal 2006, we added a domestic site and included 11 overseas sites in the scope of environmental accounting. However, regarding the overseas sites, only data for environmental impact have been compiled and benefit indicators have not yet been assessed or utilized so far. Going forward, we plan to improve the precision of the data, including at the overseas sites, and to promote active use of environmental accounting data.

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