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Environmental Accounting

Nikon

Environmental accounting is a methodology for quantifying the costs and effects of environmental conservation activities. Through the introduction of environmental accounting, we aim to improve the effectiveness of our conservation efforts and implement sustainable environmental policies with quantifiable results over a long term. We are also working to heighten awareness of our environmental conservation activities through the publication of related information and communications to clarify our stance on the environment.

Features

Nikon Group's environmental accounting features the classification of environmental costs and effects in line with our environmental preservation activities.

Basic Policy

The figures contained in our environmental accounts for the year ended March 2008 include those for Nikon Corporation and its major manufacturing subsidiaries and others. The categories of environmental costs (investments and expenses) are based on the Nikon Group's environmental targets and related measures, as well as the standards set forth in the Environmental Accounting Guidelines (2005 version) of the Japanese Ministry of the Environment.

Effects of Environmental Conservation Activities

The Year ended March 2008 Results in the Environmental Action Plan presented in the last chapter show the actual results of various measures towards environmental targets. The undertable shows the economic effects of environmental conservation measures.

Cost of Environmental Conservation
(Nikon, Tochigi Nikon, Tochigi Nikon Precision, Mito Nikon Precision, Sendai Nikon, Sendai Nikon Precision, Zao Nikon, Kurobane Nikon, Hikari Glass, TNI Industry Nagai Factory, etc.

(Unit: million yen)
Theme Main activities Invest-
ment
Ex-
penses
Total
Product environ-
ment
Product develop-
ment
Energy saving, resource saving, Reduction in use of hazardous chemical substances Creating energy-efficient designs, RoHS Directive compliance, etc. 10 219 229
Green procurement Green Procurement Standards, etc. - 36 36
Packaging & distribution Eco-friendly driving courses, surveys of transport volume, etc. - 1 1
Product environment subtotal 10 256 266
Work-
place environ
ment
Energy saving Upgrading air conditioning systems, installation of inverter-equipped equipment, etc. 273 23 296
Waste reduction Maintenance of zero-emission systems, reduction in water usage 1 66 67
Reduction in use of hazardous chemical sub-stances Disposal & management of unnecessary chemical substances 1 7 8
Green procurement Promoting purchase of eco-friendly articles, etc. - 6 6
Improvements to workplace Improvements to workplace environment performance - 41 41
Workplace environment subtotal 275 143 418
Legal compliance Management of equipment for processing gaseous emissions and effluents, maintenance of noise/vibration-emitting facilities,waste management, recycling fee management, control of dangerous substances, etc. 625 1,021 1,646
Administration ISO 14001 (administering Environmental Management System (EMS), workplace education), social contribution activities, planting trees, etc. 28 1,446 1,474
Grand total 938 2,866 3,804

Applicable Period: April 1, 2007 to March 31, 2008

Note: Costs which could not be clarified are in principle not included in these accounts. Depreciation and amortization have not been factored into these accounts.
Where a facility has been utilized for several purposes and breakdown is considered complex, the entire cost has been included in the investment cost.
All costs have been rounded up or down to the nearest whole number, so it is possible that a total is not identical to the sum of the constituents as listed.
Only “substantial effects” deducible based on sound reasons are included as economical effects of environmental conservation measures.

Cost of environmental protection classified according to guidelines of the Japanese Ministry of the Environment
(Nikon, Tochigi Nikon, Tochigi Nikon Precision, Mito Nikon Precision, Sendai Nikon, Sendai Nikon Precision, Zao Nikon, Kurobane Nikon, Hikari Glass, TNI Industry Nagai Factory, etc.)

(Unit: million yen)
Theme Main activities Invest-
ment
Ex-
penses
Total Eco-
nomic effect
Costs within business establishment area Pollution prevention costs Management of equipment for processing gaseous emissions and effluents, maintenance of noise/vibration-emitting facilities 463 606 1,069 0
Global environment protection costs Energy conservation, reduction in use of hazardous chemical substances, control of dangerous substances 465 140 605 23
Resource recycling costs Waste reduction, waste management, recycling fee management, Maintenance of zero-emission systems 1 407 408 100
Subtotal 928 1,153 2,081 123
Upstream/downstream costs Application of Green Procurement Standards, hazardous chemical substance surveys, recycling fee management, etc. - 43 43 0
Administration costs ISO 14001 (administering Environmental Management System (EMS), workplace education), etc. - 510 510 0
R&D costs Creating energy-efficient designs, RoHS Directive compliance, etc. 10 219 229 0
Social activity costs Social contribution activities, sponsorship activities, public relations, etc. - 27 27 0
Environmental damage costs Soil treatment costs, pollution load levy - 913 913 0
Grand total 938 2,866 3,804 123

Applicable Period: April 1, 2007 to March 31, 2008

Note: Costs which could not be clarified are in principle not included in these accounts. Depreciation and amortization have not been factored into these accounts.
Where a facility has been utilized for several purposes and breakdown is considered complex, the entire cost has been included in the investment cost.
All costs have been rounded up or down to the nearest whole number, so it is possible that a total is not identical to the sum of the constituents as listed.
Only “substantial effects” deducible based on sound reasons are included as economical effects of environmental conservation measures.




© 2008 Nikon Corporation