Accounting Methods
The cost is defined as follows, with reference to guidelines produced by the Ministry of the Environment.
1. Costs, which can be clearly assessed and accounted for, of environmental pollution prevention and environmental preservation and remediation.
2. Costs are designated as investments or expenses. Investments are defined as work performed for the pur- pose of preventing pollution and preserving the environment for that period.
3. Expenses involved include the cost of raw materials and personnel expenses that correctly reflect the depreciation charge for the facilities.
Results for Fiscal 2001
Investment costs amounted to approximately ¥2.3 billion ($1.9 billion) while expenses reached approximately ¥16.6 billion ($13.8 billion). Additionally, the economic effect in conjunction with the cost of environmental preservation amounted to approximately ¥1 billion ($0.83 billion).
We continue systematic efforts to reduce costs by improving our accuracy in determining environmental costs and increasing care with business operations and management.
We are also planning and implementing more efficient and effective ways of reducing the environmental load by focusing on eco-efficiency.