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Environmental accounting [EN31]

To efficiently and effectively promote its environmental activities, Kao quantifies the costs and results of those activities in numerical terms.

Global

2015 environmental accounting report

  1. The aggregation methods comply with the Japanese Ministry of the Environment’s Environmental Accounting Guidelines 2005. Kao also refers to the Environmental Accounting Guidelines for Chemical Companies (November 2003) issued by the Japan Chemical Industry Association.
  2. The companies within the scope of accounting are the Kao Group in Japan and outside Japan.
  3. See Product Lifecycle and Environmental Impacts for environmental conservation results (numerical results).
    Conservation > Product lifecycle and environmental impact
Environmental conservation costs (categories corresponding to business activities)(Unit: millions of yen)
    Inside Japan Outside Japan
Categories Key activities Investment Cost* Investment Cost*
(1) Business area costs 2,058 4,120 446 1,469
Breakdown ①Pollution prevention Air pollution prevention, water contamination prevention 913 1,690 94 683
②Global environmental conservation Energy conservation 886 467 325 210
③Resource circulation Resource conservation, waste processing and disposal 259 1,963 27 576
(2) Upstream/downstream costs Plant and equipment for eco-conscious products, containers and packaging recycling 566 2,761 0 61
(3) Administration costs Acquisition and maintenance of ISO certification, environmental publicity, tree planting within work sites 9 1,064 0 99
(4) R&D costs Eco-conscious R&D 1,161 4,670 0 45
(5) Social activity costs Natural environmental conservation and tree planting activities outside work sites, donations 0 118 0 2
(6) Environmental remediation costs   0 0 0 15
Total 3,794 12,733 446 1,691
  • * Cost includes depreciation costs.
Environmental conservation costs (categories corresponding to areas of application of environmental conservation measures)(Unit: millions of yen)
    Inside Japan Outside Japan
Categories Key activities Investment Cost* Investment Cost*
①Cost related to global warming measures Energy conservation 886 467 325 196
②Cost related to ozone layer protection measures Switch to alternatives to CFCs 0 0 0 14
③Cost related to air quality conservation measures Prevention of air pollution, prevention of dust pollution, malodor prevention 747 645 33 230
④Cost related to noise and vibration measures Noise prevention 0 1 1 17
⑤Cost related to environmental conservation measures for the aquatic, ground, and geologic environments Prevention of water pollution 166 1,044 60 414
⑥Cost related waste and recycling measures Resource conservation, industrial waste volume reduction, recycling 825 4,724 26 636
⑦Cost related to measures to reduce chemical risk and emissions R&D on products and production 1,161 4,670 0 45
⑧Cost related to natural environmental conservation Natural environmental conservation and tree planting activities outside plants, donations 0 117 1 50
⑨Other costs Acquisition and maintenance of ISO certification, environmental publicity, tree planting activities within plant premises 9 1,065 0 89
Total 3,794 12,733 446 1,691
  • * Cost includes depreciation costs.
Economic effect associated with environmental conservation activities*1(Unit: millions of yen)
Inside Japan Outside Japan
Details of benefits Amount Amount
Revenue Sales value of valuable resources and fixed assets 321 240
Cost reduction*2 Reduction in costs through energy conservation 259 139
Reductions in cost through resource conservation 1,418 207
Reduction in operation costs
(maintenance costs, etc. of eco-conscious equipment)
126 60
Total 2,124 646
  • *1 For economic effect, only amounts from selling valuable resources and fixed assets and the amount of cost reduction are recorded. So-called “deemed effects,” or economic effects based on risk mitigation and other assumptions, are not recorded.
  • *2 The amounts of cost reductions are recorded only for the relevant fiscal year for the annual reduction for items generated during that year. Cost reduction amounts to be generated over multiple years are not included.
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