Environmental

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Environmental Accounting

SMK strives to reduce environmental burden by identifying and analyzing the costs of environmental preservation incurred in the course of its business operations, and resultant benefits.

Totalization Procedure
1.  SMK’s environmental accounting practices adhere to the Environmental Accounting Guidelines 2005 published by Japan’s Ministry of the Environment.
2.  Figures are based on data on capital investments and other expenses (including depreciation cost) required for the environmental preservation activities, as well as data on the benefits accrued from them in terms of money and quantity, from all Japan and overseas sites of the SMK Group.
3.  Data for environmental preservation benefits indicated a decrease in amount compared with the previous fiscal year. A year-on-year comparison is not presented for data without any reduction or comparable results with the previous fiscal year.
4.  Economic benefits accrued are clearly demonstrable and do not include speculative benefits.
5.  For the environmentally hazardous substances in the category of environmental preservation benefits, the totalization subjects were the substances regulated under the Law Concerning Reporting, etc. of Releases to the Environment of Specific Chemical Substances and Promoting Improvements in Their Management (Pollutant Release and Transfer Register, or PRTR Law).

Environmental Preservation Costs and Benefits

(Unit: million yen)
Category Major Activities Environmental Preservation Cost Economic
Benefits
Accrued
Environmental
Preservation
Benefit (Quantity)
Investment Expense
Amount Year-
on-
Year
Amount Year-
on-
Year
Amount Year-
on-
Year
Consumption/
Output Savings
Year-
on-
Year
Business
area
costs
Pollution
prevention
Operation and maintenance of facilities used to prevent pollution 2.5 25% 27.8 83% 0.0

-

Use of Environment Hazardous Substances:
9.7 tons

-

Global
environmental
preservation
Efficient operation and maintenance of equipment, such as air-conditioners, daily efforts for energy savings,etc. 21.8 48% 41.8 135% 14.2 601% CO2 emissions per unit of production value: -0.07 tons-CO2 /million yen

-

Resource
circulation
Appropriate processing and recycling promotion of industrial waste 0.0

-

38.6 78% 189.2 101% Landfill waste amount:
53.2 tons
49%
Industrial waste
discharge
per unit of
production
value:
-0.002tons/
million yen

-

Sub-total 24.3 44% 108.2 95% 203.4 107%
Upstream/
downstream
Green procurement 0.0

-

1.1 27% 0.0

-

Administration Elimination of environmentally
hazardous substances
Education and operation of environmental
management
1.1

-

184.8 94% 0.0

-

R&D Development of environment-friendly products 0.0

-

54.0 80% 0.0

-

Social activity Initiatives to expand
green space of works
0.0

-

8.6 103% 0.0

-

Environmental
remediation
0.0 - 0.0 - 0.0

-

Total 25.4 46% 356.8 91% 203.4 107%
Environmental Preservation Costs
The environmental preservation costs in fiscal 2008 consisted of 25 million yen for capital investments (13 million yen for Japan and 12 million yen for overseas sites) and 357 million yen for expenses (261 million yen for Japan and 96 million yen for overseas sites), both of which have declined from fiscal 2007 level.

[Major topics]
The major factors behind the decrease in investments and expenses were the curtailment of investment, review of business content, and increase in efficiency in response to the drastic downturn in the business climate in the second half.
Most of the investments went for replacement of air conditioning systems, air compressors, lighting, and other equipment with the latest models making more efficient use of electrical energy.
Economic Benefits
In fiscal 2008, the economic benefits increased to 203 million yen (53 million yen from Japan and 150 million yen from overseas sites) from fiscal 2007 level.

[Major topics]
The total economic benefits increased because the results in the previous fiscal year were outstripped by the effects of the reduction in utility costs due to installation of energy saving facilities, and curtailment of purchasing to use idle production facilities and reuse tools instead.
The profit on sale of waste, which occupies a particularly large part of the overall economic benefits, declined along with the reduction in the amount of industrial waste discharge per se.
Environmental Preservation Benefits
There were increases in both the levels of CO2 emissions and industrial waste discharge per unit of production value, which rose by 0.07 tons-CO2 and 0.002 tons per million yen respectively. This was because the effects of improvement were not able to compensate for the worsening of efficiency levels per unit of production value under the influence of the production drop accompanying the economic downturn.
The landfill waste amount, which fell in fiscal 2007, was reduced again in fiscal 2008 by 53 tons as a result of recycling. One task for the future is to take steps overseas to address sludge, for which the recycling infrastructure is not in place.