With reference to the guidelines of the Ministry of the Environment, FHI formulated its own guidelines*1 according to its environmental conservation activity organization, based on which the environmental cost and economic effects are calculated. (The same method is applied to FHI group companies.) Please refer to pages 9 to 13 in the Supplementary Volume for Data related to 2006 Environmental & Social Report for details on calculation method.
The amount of money invested (Amount invested ≥25 million yen) in facilities that have been introduced for both environmental and other purposes, plus related costs (maintenance management cost etc.), and finally labor cost are calculated on differential or pro-rata basis. For example, investment amount and environmental cost for energy saving at one manufacturing facility is calculated as follows:
Amount invested in facilities, environmental cost = K x (amount invested in the manufacturing facilities, maintenance cost, etc.)
This K is an environmental impact factor that is calculated by the following scheme:
K = (Total amount invested – Amount invested without energy saving targets)/Total amount invested
Environmental costs came to 17.7 billion yen on an unconsolidated basis, up 1.35 billion yen (8.2%) from the previous fiscal year, while it amounted to 18.5 billion yen on a consolidated basis, up 1.31 billion yen (7.6%) year-on-year. The cost increase was mainly due to an increase in research and development costs (increased by 1.3 billion yen on an unconsolidated basis). The ratio of environmental cost to sales, which is one of the environmental management indexes used on a consolidated basis, came to 1.26%.